What Is IGST Refund?

An IGST refund returns the integrated tax an exporter paid on a zero-rated supply. Exports are zero-rated, so the tax paid on them can be claimed back. The law describes two routes. One is to supply without paying IGST under a Letter of Undertaking and claim a refund of unutilised input tax credit. The other is to pay IGST on the export and claim a refund of the tax paid, which section 16(4) allows only for classes of persons or services the government notifies. A refund claim is made in the form and manner prescribed, and an application must be made within two years from the relevant date. Which route suits you depends on your cash flow and your input tax credit, so ask a tax adviser.

For example, a registered software firm bills a client in Australia and pays IGST on the invoice. It then applies on the GST portal for a refund of that IGST, with the invoice and proof of foreign exchange receipt that its tax officer asks for.

• GST: Section 16(3) lets a registered person making a zero-rated supply claim a refund of unutilised input tax credit when supplying under a bond or Letter of Undertaking. Section 16(4) lets the government notify classes of persons or services that may pay IGST and claim a refund of that tax. Since 1 October 2023, section 16(3) covers only the LUT route.
• Time limit: Section 54(1) says an application is made before the expiry of two years from the relevant date, in the prescribed form and manner.
• Application: Rule 89(1) provides for applications electronically in FORM GST RFD-01 through the common portal, with separate treatment for refund of IGST paid on goods exported.
• Cash flow: Paying IGST first ties up money until the refund arrives. The LUT route avoids paying it. Compare both with your adviser.

An IGST refund starts with a zero-rated supply and ends with a refund order. The route depends on whether IGST was paid.

1. Make a zero-rated supply such as an export of services.
2. Choose to supply under a LUT without IGST, or pay IGST only if you fall in a class notified under section 16(4).
3. File your GST returns reporting the export.
4. Apply for the refund in FORM GST RFD-01 on the GST portal under rule 89(1).
5. Respond to any queries from the tax officer.
6. Receive the refund order if the claim is accepted.

Pay attention to the route you chose and the time limit. Check the exact steps and documents with the GST portal guidance or your adviser.

1. Confirm the supply meets the export of services conditions.
2. Check whether you paid IGST or supplied under LUT. The GST portal LUT guide explains the LUT form, FORM GST RFD-11.
3. Gather invoices and proof of receipt in foreign exchange.
4. File FORM GST RFD-01 on the common portal.
5. Note the two-year limit under section 54(1) and apply before it ends.
6. Track the application and reply to notices promptly.

• Automatic refund: Services refunds are not credited on their own. You apply in FORM GST RFD-01, as rule 89(1) describes.
• Both routes: LUT and paying IGST are separate routes for a supply, and the second is limited to notified classes. Ask your adviser which applies to you.
• No deadline: Section 54(1) sets a two-year limit from the relevant date. Missing it can end the claim.
• Any foreign client: Only zero-rated supplies qualify. A supply that fails the export conditions may not be eligible.

• Zero-rated supply: A supply on which no net GST is borne.
• LUT: An undertaking to export without paying IGST.
• Export of services: A supply meeting the five conditions in IGST Act section 2(6).
• Place of supply: The location treated as where a supply is made.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. IGST Act, 2017, Section 16, Section 16(1), (3), (4) (checked 9 Oct 2026)
2. CGST Act, 2017, Section 54, Section 54(1) (checked 9 Oct 2026)
3. CGST Rules, 2017, Rule 89, Rule 89(1) (checked 9 Oct 2026)
4. GST portal tutorial, Furnishing of Letter of Undertaking, FORM GST RFD-11 (checked 9 Oct 2026)