Exporters play a vital role in India’s economy, and the Goods and Services Tax (GST) framework is designed to ensure they are not burdened with excess tax costs. Under GST, exporters can claim refunds on input tax credit (ITC) or integrated GST (IGST) paid on exported goods and services.
The refund mechanism helps exporters stay competitive globally by easing tax-related cash flow pressure. Refunds can be claimed through the IGST route, where tax is paid at the time of export, or the ITC route, where accumulated credit is claimed later. Understanding the refund process, eligibility conditions, and timelines is essential to avoid delays and working capital stress.
While GST refunds support operational liquidity, many exporters also park surplus funds in Bajaj Finance Fixed Deposits to earn predictable returns during refund wait periods. Open FD.
Refund process
The GST refund process for exporters is structured to ensure timely recovery of taxes while maintaining compliance. Exporters must file refund applications on the GST portal along with supporting documents.
Refunds for IGST-paid exports are processed automatically through customs systems once export details are validated. ITC-based refunds, however, require a separate application and verification by GST authorities.
Applications must be filed within two years from the relevant date of export. Once approved, the refund amount is credited directly to the exporter’s bank account. Accurate filing and documentation play a key role in avoiding rejections or prolonged processing.
Since refund timelines can vary, many exporters prefer keeping interim funds in fixed deposits that offer assured returns without market risk. Invest in a Bajaj Finance FD now and start earning up to 7.30% p.a. returns.
