LUT (Letter of Undertaking) route. Form RFD-01. 60-day refund window. 90% provisional refund in 7 days. RoDTEP combination for max export benefit.
EXPORTS = ZERO-RATED supplies under GST. Exporters get REFUND of GST paid on inputs (raw materials, services) since output is tax-free. TWO ROUTES: (1) LUT (Letter of Undertaking) — export without paying GST, claim ITC refund. (2) IGST paid + refund — pay IGST on export then claim refund. KEY: EXPORTERS major cash flow benefit — get back ₹1L-1cr+ refunds depending on scale.
LUT = annual self-declaration that exporter will fulfill export obligations + pay GST if not. SUBMIT online via gst.gov.in. Free + valid for full FY. ADVANTAGES: (1) Export without paying IGST upfront — cash flow positive. (2) Claim ITC refund on inputs. (3) Simpler vs IGST-paid route. RENEWAL: annual. New LUT before April 1 each year. PROCESS: GST portal → Services → User Services → Furnish LUT. Online + instant approval typically.
RFD-01 = REFUND APPLICATION form online. PROCESS: (1) Login to gst.gov.in. (2) Services → Refunds → Application for Refund. (3) Choose 'Refund of ITC on Export of Goods/Services without payment of tax'. (4) Upload supporting docs (shipping bills, bank realization certificate, invoices). (5) Submit + sign with DSC/EVC. (6) ARN generated. PROCESSING: 60 DAYS statutory window. Provisional refund (90% of claim) within 7 days for eligible. Final refund post-verification.
REFUND TIMELINE: (1) ACKNOWLEDGMENT within 15 days of application. (2) PROVISIONAL refund 90% of claim within 7 DAYS (for exporters with good compliance record). (3) FINAL refund within 60 DAYS. (4) BEYOND 60 days: INTEREST 6% per annum payable by government. DELAYS reasons: (a) Documentation issues. (b) Bank account validation failures. (c) Mismatch in records. (d) High-value refunds extra scrutiny.
MEIS + RoDTEP: separate EXPORT INCENTIVE schemes (NOT GST refund). (1) MEIS = Merchandise Exports from India Scheme (phased out). (2) RoDTEP = Remission of Duties and Taxes on Export Products (replacement, since 2021). (3) RoDTEP: 0.5-4.3% rebate on FOB value. (4) Both separate from GST refund — get BOTH simultaneously. STRATEGIC: combine LUT-based GST refund + RoDTEP for maximum export benefits. Many exporters get ₹5L-50L+ annual benefits across schemes.