GST Refund on Export of Goods - Lex N Tax Associates
The GST refund on the export of goods allows exporters to recover the GST paid on inputs used in the production of goods meant for export. This refund mechanism ensures that the tax burden does not affect the competitiveness of Indian goods in the international market. Exporters can claim the refund either through the LUT (Letter of Undertaking) or by paying IGST and later claiming a refund. To facilitate this process, exporters must adhere to specific procedures, including filing the necessary documentation and returns as stipulated by GST laws. The timely processing of these refunds is crucial for maintaining the liquidity and financial health of exporting businesses.