With Mundra, Kandla and a strong export base, Gujarat lives on foreign trade — and GST sits at the centre of it. Imports carry IGST you can claim back; exports are zero-rated; and the LUT-plus-refund route is where exporters recover real working capital.
Imports: IGST and its credit
On imports, IGST is levied (along with customs duty) at the point of import. The good news is that this IGST is generally available to you as input tax credit — so for a registered business importing for its trade, the IGST is recoverable rather than a final cost. Correctly capturing import IGST in your returns is what makes sure that credit isn’t lost.
Exports: zero-rated under LUT
Exports of goods and services are zero-rated. Most exporters file a Letter of Undertaking (LUT) for the year and export without paying GST, then claim refunds of the input credit accumulated on domestic purchases. The alternative — paying IGST and claiming it back — blocks cash, so the LUT route is usually preferred. We file the LUT and pursue the refunds.
IEC, documentation and refunds
- An Import Export Code (IEC) is needed to trade internationally — we can arrange it
- Shipping bills, BRC/FIRC and matching documentation drive refund sanction
- Refunds must reconcile with GSTR-1 and GSTR-3B to avoid deficiency memos
- Place-of-supply rules determine treatment of related services