EXEMPTED GOODS EXPORT

Hello Pandian,
You're asking a very practical and important question — how to claim GST refund on freight charges paid for export of exempted goods, since the goods themselves are exempt from GST, but you paid GST on the input service (freight).

Let’s break this down clearly.

✅ Key Point:

Even though the exported goods are exempt, if you have paid GST on input services (like freight) used for exports, you may be eligible for refund of unutilized ITC under Rule 89(4B) of the CGST Rules.

✅ Legal Provision – Rule 89(4B)

Refund of input tax credit shall be granted even if the exported goods are exempted, where tax is paid on input services (e.g., freight charges) used for export.

✅ Type of Refund Claim:

You will apply under:

📌 "Refund of unutilized ITC on account of export of exempted goods without payment of tax (Rule 89(4B))"

✅ Checklist of Forms and Documents to File:

1. GST RFD-01 – Refund Application

File it online on GST portal
Select Refund Type: "Exports of exempted goods without payment of tax – Rule 89(4B)"

2. Required Attachments/Documents:

Document	Descripttion
📄 Export Invoices	For the exempted goods exported
📄 Shipping Bills / Bill of Export	Mandatory for proving export
📄 Freight Invoice (with GST)	This is the input service on which GST is paid
🧾 GST Payment Proof	Proof of GST paid on freight (GST invoice + GSTR-2B match)
📦 Export Proof (BRC/FIRC)	Bank Realization Certificate or FIRC for foreign inward remittance
📊 Statement 3B	Details of input services and tax paid – auto-generated or upload manually
📅 GSTR-2A/2B Reconciliation	To show the freight input tax appears in GSTR-2B
🖋️ Declaration/Undertaking	Under Rule 89(2)(l) and (m) if ITC not passed on, etc.

✅ Steps to File on Portal:

Go to GST Portal → Login
Services → Refunds → Apply for Refund
Select “Refund of unutilized ITC on account of exports of exempted goods without payment of tax”
Select period → Fill relevant tabs
Upload necessary documents
Preview and Submit → File with DSC or EVC

✅ Important Notes:

Only input services used for export (like freight) are eligible.
ITC refund is limited to the proportion used for export of exempt goods.
You must not have availed drawback of GST or claimed under any other refund type.

📌 Sample Input Service:

Input Service	GST Paid	Eligible for Refund?
Freight Charges	Yes (with GST invoice)	✅ Yes
CHA / Shipping Agent	Yes	✅ Yes
Customs Duty	❌ No (Not under GST)	❌ Not eligible

✅ Processing Time:

Acknowledgment in 15 days (Form GST RFD-02)
Refund issued in 60 days (if complete and valid)

✅ Summary:

Step	Action
1	Log in to GST portal → Go to Apply for Refund
2	Select Exports of Exempted Goods – Rule 89(4B)
3	Attach invoices (goods + freight), shipping bill, BRC/FIRC
4	Submit Form GST RFD-01 with declaration
5	Wait for acknowledgment → Refund processing