For export only being a proprietor where does GST refund happen Purchase side or selling side

Great question about GST refund on exports as a proprietor! Let me clarify the mechanics and rules:

Basics for Export under GST:

• Exports are zero-rated supplies under GST (Section 16 of IGST Act).

• You do not charge GST on export invoices.

• You are eligible to claim a refund of the Input Tax Credit (ITC) paid on inputs (purchases) used for export or alternatively export under LUT/Bond without payment of IGST and claim refund of unutilized ITC.

Now, let’s analyze your situations:

Situation 1:

• You purchase products including GST.

• You add your profit margin on top of the purchase price.

• You do not charge GST on export invoice.

• You claim refund of GST paid on your purchases (inputs/input services).

This is the correct and usual method for export under GST.

Situation 2:

• Same as Situation 1, but you subtract GST from your profit margin to set your export price.

• This is just a pricing strategy, not related to GST rules.

• You still do not charge GST on export invoice.

• You claim refund of GST paid on purchases.

This is also valid, pricing is your business decision; GST treatment remains same as in Situation 1.

Situation 3:

• You pay GST on purchases (inputs) as usual.

• You charge GST on your export selling price including profit margin.

• You claim refund of the GST charged on exports in addition to ITC on purchases.

This is NOT correct because:

• You cannot charge GST on exports (exports are zero-rated).

• If you charge GST on exports, it will be an error, and your export invoice will be incorrect.

• You can only claim refund of ITC on inputs and input services, not IGST charged on exports.

• GST charged on export invoices will likely be rejected by the tax department, and cause complications.

Summary:

Additional Notes:

• You should issue export invoices without GST (zero-rated).

• Claim refund of input GST (ITC) paid on purchase/input services used for export.

• You can export under LUT/Bond without payment of IGST.

• Maintain proper documents (purchase invoices, export invoices, shipping bills) to support refund claim.