Export of Services and the Impact of GST thereon

Is Export of Services chargeable to GST?

Export of services is considered a zero rated supply and exempted from GST. But, The entity is eligible to claim a refund on the amount of input GST paid by the entity.

When is a service considered to be exported?

A service is considered to be exported if the following criterion, set by the CGST act, are met with.

1. The supplier of the service is within India.
2. The recipient of service is outside India.
3. The area of supply of service is outside India.
4. The payment for such service obtained by the supplier is the convertible foreign exchange.
5. The supplier of service and the recipient of service are not from the establishments of a different person.

What are the eligibility criteria for claiming a refund on the amount of GST paid by the entity exporting services?

In order to claim a refund of GST paid in form RFD-01A with the GST department, the following criteria are laid down:

1. The Taxpayer is enrolled with GST Portal and holds an active GSTIN (Identification Number) for the period of refund is applied.
2. Form GSTR-1 and Form GSTR-3B need to be filed for all the tax periods for which refund is intended to be claimed.
3. The taxpayer has to make payment for taxes at the time of exporting services, which needs to be claimed for refund.

What documents should be submitted alongside form RFD-01A while claiming the said refund?

The entity applying for refund should upload several documents along with form RFD-01A to claim a refund of GST paid. These documents include:

1. Copy of refund application(RFD-01A)
2. GSTR-1
3. GSTR-3B Form
4. ARN (Application reference number of the Application)
5. The respective entries of payments and refund claimed in the Electronic cash ledger.
6. Self-declaration for refunds less than Rs. 2 lakhs and Undertaking that refund is not claimed from any other tax authorities.
7. Challan vide which the Tax Payment was made.
8. Cancel cheque, for providing bank details in which the refund will be credited.

Additionally, Statement 2 having details of invoices for export of services with integrated tax or any other supporting documentation can be uploaded by the taxpayer, if needed by the sanctioning authority.

How can I claim refund of GST for services exported by me?

You can file an application form for claiming refund through the GSTN portal. Refund amount will be credited electronically to your account via ECS, RTGS or NEFT.

You may also submit a physical copy of all the documents, with a cover letter addressing the situation, to your proper GST jurisdiction office.