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

Situation 1 – I purchase a finished product or raw material on “Purchase Price” in India, In this purchase price the seller has already added GST. Now I add my profit margin on top of this ‘Purchase Price’ and then export it without adding GST in the Invoice and then later claim for GST which I paid during the purchase which was part of the purchase.

Situation 2 – I follow the above thing except that while adding my profit margin before export I subtract GST amount from my profit margin to conclude the final export selling price (as that GST I will be getting after claiming)

Situation 3 – I pay GST when I am purchasing (as already added in the purchase price) and then export (sell) the product after adding GST, this would be a higher figure of GST than what I already paid during purchase as now GST is calculated on my selling price which includes my profit margin also and then later claims for the GST which I added on export selling price. So basically when I am claiming on this GST which I added to the export selling price then I would be getting a refund of the complete GST figure (the figure which I gave at the time of purchase which I added in the export selling price with a higher amout of GST based on the final selling price of export).

Please tell me which situation will actually happen in the case of Export ?

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:

Situation	Is it compliant?	Refund available on:
1	Yes	GST paid on purchases (ITC)
2	Yes	GST paid on purchases (ITC)
3	No	Cannot charge GST on exports, refund claim will be rejected

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.

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Aashok Kumar Sharma