GST Refund & LUT Filing
Refund applications for exports and inverted duty structures, and annual Letter of Undertaking filing.
Refund applications are typically processed in 60–90 days; LUT filing is usually completed within 1–3 working days
Where tax paid exceeds tax payable, a refund may be claimed. The common situations are exports, supplies to special economic zones, and an inverted duty structure where inputs are taxed at a higher rate than the finished supply.
A Letter of Undertaking is the separate mechanism that lets an exporter supply without paying integrated tax up front, so that working capital is not tied up awaiting a refund.
LUT rather than refund, where possible
An exporter has two routes: pay integrated tax on the export and claim it back, or furnish a Letter of Undertaking and export without payment. The second avoids the cash being locked up for the refund cycle, which for a regular exporter is usually the better position.
An LUT is furnished for each financial year and must be renewed. Exporting without a valid LUT in place means falling back to the pay-and-claim route for those supplies.
Why refund claims are delayed
Most delays come from documentation rather than entitlement: shipping bill and return data that do not match, bank realisation evidence not furnished, or a statement filed in the wrong format. The claim is not rejected — it is queried, and the clock restarts.
We check the consistency of the underlying data before filing, which is where most of the avoidable delay sits.
Who needs this
- Exporters of goods or services
- Businesses supplying to special economic zones
- Businesses with an inverted duty structure
- Anyone who has paid tax in excess of the liability
Eligibility and conditions
- An active GST registration
- Returns filed for the periods covered by the claim
- Export or supply documentation supporting the claim
- For LUT: no prosecution for tax evasion above the prescribed amount
What this covers
-
Route advice
Whether LUT or the pay-and-claim route suits your working capital position.
-
LUT filing
Prepared and filed for the financial year, with renewal reminders.
-
Refund applications
Claims prepared with the statements in the prescribed format.
-
Data consistency check
Shipping bill, invoice and return data checked before filing.
-
Query response
Departmental queries on the claim answered.
How the process works
-
Establish the basis
Which category of refund applies, and for which periods.
-
Check the data
Returns, invoices and shipping documents cross-checked.
-
Prepare the claim
Application and statements compiled in the prescribed format.
-
File
Application submitted with supporting documents.
-
Follow up
Queries answered and the claim tracked to disposal.
Documents required
-
Export invoices
For the period covered by the claim.
-
Shipping bills
With the corresponding invoice references.
-
Bank realisation certificates
Or foreign inward remittance certificates.
-
Returns for the period
GSTR-1 and GSTR-3B as filed.
-
Statement of inward supplies
Where an inverted duty claim is made.
-
Declaration and undertakings
In the prescribed formats.
The list above is indicative. Additional documents may be required depending on your case and the current departmental requirements.
Articles on this topic
Exporting, or holding an accumulated credit balance?
Tell us about your supplies and we will set out the refund route that applies and what it requires.