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Refund application of itc accumulated due to export to nepal
how to fill statement-3 as there is only LR copy as proof of movement of goods.There is no Bill of export/Shipping Bill or EGM details
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| Yes, refund of accumulated ITC on exports to Nepal is available, but with specific conditions since Nepal is a special case. Here is the full picture: 1. Nepal/Bhutan — Special Treatment: - Exports to Nepal and Bhutan are treated as zero-rated supplies under GST (even though they are land borders and payments are often in INR) - IGST Act treats Nepal and Bhutan as 'deemed foreign territory' for the purpose of export — supplies are zero-rated - RBI permits INR settlement for Nepal/Bhutan trade — so INR realisation from Nepal qualifies for zero-rated status 2. Refund Route: - Option 1: Export under LUT (without payment of IGST) and claim refund of accumulated ITC under Rule 89(4) - Option 2: Export with payment of IGST and claim refund of IGST paid (more straightforward for Nepal trade since many exporters don't have LUT filed) 3. Procedure for ITC Refund (RFD-01): - File LUT in Form RFD-11 annually on GST portal (if not already filed) - File GST RFD-01 → Select 'Refund of ITC on account of zero-rated supplies without payment of tax' - Upload Statement 3A (for goods) or 3B (for services) - Supporting documents: Export invoices, shipping bill / ARE-1 form (for Nepal land exports), Bank Realisation Certificate (BRC) in INR from your bank confirming Nepal payment, LUT copy 4. Nepal-Specific Document: For Nepal exports, instead of a shipping bill, the export evidence is the ARE-1 form or customs-endorsed invoice — ensure you have this document as proof of export 5. Time Limit: File refund within 2 years from the relevant date (date of export) 6. GSTN Validation: The GST portal cross-checks export data with ICEGATE — for Nepal land border exports, ensure data is correctly filed in GSTR-1 under zero-rated supplies |
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