Taxation & Compliance
Posted on Jul 18, 2025
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Exporters get several benefits under the GST law. One of the most important ones is that exports are treated as zero-rated supplies. This means you don’t have to pay GST on the goods or services you export. You can also claim a refund on the GST or input tax credit (ITC) you paid while manufacturing or sourcing those goods.
But the refund process can be confusing. You need to check whether you are eligible, what documents to submit, and several other things.
In this guide, we’ll break down everything you need to know about GST refunds, including eligibility, steps, timelines, and common mistakes that can delay your refund.
Understanding GST on International Payments
When you receive payments from clients outside India for your goods or services, these are treated as exports under GST law. Exports are considered zero-rated supplies, and you're eligible to claim a GST refund or input tax credit.
This means that you don’t have to pay GST on international payments. But there’s a catch: zero-rated doesn’t mean exempt. You still need to comply with filing and documentation rules to claim refunds.
You need to meet the following conditions to qualify under “Export of Services” as per GST regulations:
The supplier (you) is located in India.
The recipient (your client) is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange or through an approved foreign inward remittance method.
The supplier and recipient are not merely establishments of the same legal entity.
If all these criteria are met, your service qualifies as a zero-rated export. That means you can either claim a refund of the IGST paid or skip paying IGST altogether by filing a Letter of Undertaking (LUT).
If you're still wondering, "Do I still have to worry about GST if I use platforms like Payoneer, Wise, or Infinity to receive payments?"
The short answer is yes. The payment platform doesn't change your GST obligations. What matters is who you're providing the service to, where they are located, the actual flow of foreign currency, and how the payment is received.
Who Can Claim a GST Refund?
Any GST-registered individual or business in India that exports services or goods can claim a GST refund.
This includes:
Freelancers working with global clients.
Small business owners providing cross-border services.
SaaS founders with foreign subscriptions.
Consultants, designers, developers, and marketers with international contracts.
Traditional exporters of physical goods.
Two Ways to Claim GST Refund
There are two ways Indian exporters to claim GST refund on international payments:
Method 1: Export Under LUT
No GST will be charged to your international invoice (since you use a LUT instead).
You can claim a refund only on your Input Tax Credit (ITC). This means the GST you paid on business expenses like SaaS subscriptions, office supplies, or contractors.
It takes a slightly longer processing time, but fewer formalities.
This method suits most freelancers and service exporters who want to avoid charging GST upfront.
Method 2: Export with IGST payment
You charge and pay IGST on your invoice.
You claim a full IGST refund.
This is the faster method, often processed in 15–60 days, recently averaging below 60 days. It is ideal for those okay with a temporary cash outflow.
Source: Reddit Post
GST Refund: Export Under LUT vs IGST
Criteria | Export under LUT | Export with IGST |
GST on Invoice | No | Yes |
Refund Type | ITC (input only) | IGST paid |
Speed | Slower | Faster |
Process Complexity | Moderate (extra docs: LUT renewal yearly) | Simple, auto-matched with ICEGATE (customs) |
Used By | Freelancers, SaaS, consultants | High-value goods exporters, B2B companies |
Latest regulations | Invoice-based claim, all GSTR-1/3B must be filed before | Invoice-based claim, quick validation by customs |
Complexity | Slightly more | Straightforward |
Provisional Refund | Not available | Up to 90% within 7 days for exporters |
Step-by-Step Process to Apply for Refund on the GST Portal
Follow these simple steps to file GST refund application correctly:
1. Get your GSTIN ready (and LUT if applicable)
First, ensure you have an active GSTIN (GST Identification Number). If you’re exporting without paying IGST, make sure your LUT (Letter of Undertaking) for the current financial year is approved and valid.
2. File returns
Before you can claim a refund, you must file your regular GST returns:
GSTR-1: Details of outward supplies (invoices issued).
GSTR-3B: Summary return with tax liability and ITC claims.
If you’re under the Quarterly Return Monthly Payment (QRMP) scheme, ensure your invoice details are correctly uploaded using the Invoice Furnishing Facility (IFF).
3. Fill out your refund preapplication form (Form RFD-01)
Log in to the GST portal, select: Services > Refunds > Application for Refund.
Select the relevant refund category: "Refund of ITC on Export of Services without Payment of Tax” (for LUT) or “Refund of IGST Paid on Export” (if tax was paid).
Starting from 2025, refunds are filed invoice-wise, so only invoices uploaded to the GST portal are considered valid.
4. Upload necessary documents
You’ll need to upload the following supporting evidence with your application:
FIRC (Foreign Inward Remittance Certificate) or e-BRC/payment proof.
Shipping bill (for goods).
Invoice copies.
Annexure B: Statement of export invoices.
In addition to these documents, you also need to fill the information in the form, including:
Nature of business: Mention whether you’re a merchant exporter, trader, or service provider.
Date of IEC issued: This is to get a refund on export using LUT.
Value of exports: It will be calculated at the GSTIN level.
Aadhaar card: You also need to share the Aadhaar card of the primary authorised signatory.
(Infinity generates export reports, invoice summaries, and eFIRC automatically for quick compliance.)
5. Submit & track status
After uploading all documents, submit the application using your Digital Signature (DSC) or Electronic Verification Code (EVC). If you want to track the refund status, go to the “Track Application Status” section on the portal.
Read More: Guide to Regulatory Compliance in B2B Cross-Border Payments
Common Mistakes That Delay Refunds
Even the most experienced exporters and freelancers can get tripped up by simple mistakes that cause refund delays. Here’s what to watch for, based on what hundreds of CAs and exporters are seeing this year:
Missing or incorrect FIRC/e-BRC details.
Mistakes in invoice currency (listing INR instead of USD/EUR).
Not filing GSTR-1 or GSTR-3B before refund application.
Using the wrong refund form (e.g., RFD-10 instead of RFD-01).
Not reconciling the bank receipt date with the GST invoice date.
Timelines: When Will You Get the Refund?
So, you’ve filed your refund application and now the big question: “When will the money land in my account after filing for GST refund?”
Generally, expect a refund in 15–60 days after application. The time depends on a few key factors:
Documentation accuracy: One of the biggest causes of refund delays is mismatches in invoices, payment proofs, or return filings. Make sure you maintain proper documentation.
Refund route: IGST payment refunds are processed faster, usually within just 15-30 days. LUT/ITC refunds take longer due to more verification steps.
Here are a few tips to help you get the GST refund on time.
File your GSTR-1 and GSTR-3B on time every month.
Reconcile your export invoices with bank receipts.
Respond promptly to any queries or notices from the GST department.
Can You Get GST Refunds for Past International Payments?
Yes, under current GST rules, you can file refund claims for exports up to 2 years from the date of export or when you received the payment.
For example, if you received a foreign payment in August 2023, you can file a refund application until August 2025.
However, you will have to show clear and up-to-date documents. Just make sure you have:
Export invoices.
Payment proof (like FIRC or bank statements).
Filed GST returns (GSTR-1 and GSTR-3B) for those periods.
Even with proper documentation, retrospective filing can get tricky. It's best to consult a CA or GST professional to get GST refunds.
How Infinity Helps with GST Compliance
Documentation and compliance management is one of the biggest challenges of receiving international payments. The good thing is that international payment platforms like Infinity can help you automate compliance.
Infinity is a cross-border payment platform that helps Indian freelancers and exporters receive international payments at low costs.
With Infinity, you can:
Download GST-ready invoices straight from your dashboard.
Track your international payment receipts and export values in one place.
Prepare documentation bundles for RFD-01 applications. Your export data is auto-organised, which means preparing for Form RFD-01 is much faster.
Export eFIRCs, international invoices, and payment summary to maintain records or share it with professionals.
Receive Payments with Infinity
Getting a GST refund on international payments can feel confusing at first. But once you know how it works, it's a smart way to get back the money you've already paid as tax.
The key is consistency. Understand which method applies to you (LUT or IGST), file accurate returns, act quickly on notices, and always double-check your filings before submitting. and keep your documentation in order. That’s the key to avoiding delays or rejections.
And if managing it all feels overwhelming, tools like Infinity are here to help you stay organised, reduce errors, and move through the refund process with confidence. File your refunds on time and stay audit-ready.
FAQs
1. Is GST applicable on international freelancing income?
No, if the “export of services” conditions are met, it’s a zero-rated supply and no GST is charged.
2. Do I need to charge GST if my client is outside India?
Yes, only if you do not use LUT. With LUT, you can issue GST-free invoices.
3. What documents do I need to get a GST refund on exports?
You need FIRC or e-BRC, invoices, export summary, GSTR-1 and 3B filings, LUT (if used), and payment proof to claim a GST refund on exports.
4. Can I claim a GST refund if I’m under the composition scheme?
No. The composition scheme is only for sales within India. It doesn’t apply to exports.
5. Can I file a GST refund myself, or do I need a CA?
You can file it yourself on the GST portal, but getting a CA’s help can reduce errors and speed up processing especially if claims are large or documentation is complex.
