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GST on Export & Import

Reconciliation strategies, RCM rules, customs clearance, and refund management.

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GST on Exports

Exports are treated as a "Zero-Rated Supply" under GST. To encourage global competitiveness, the tax burden must not remain on the exporter.

LUT Path No Cash Outflow
01. Submit LUT online (Form GST RFD-11) before export.
02. Raise Tax Invoice declaring export without IGST.
03. File shipping bill containing LUT ARN.
04. Claim refund on accumulated raw material ITC.
Working Capital: trending_flat 100% Retained
IGST Path Pay & Refund
01. Pay IGST dynamically during custom clearance.
02. File Shipping Bill with correct invoice/IGST details.
03. Customs transmits shipping bill data to GSTN.
04. Automatic refund credited directly to bank account.
Refund Time: schedule 15-45 Days
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GST on Imports

Imports are treated as an "Inter-State Supply" under GST rules, making them subject to Integrated Tax.

calculate Import IGST Valuation Stack
CIF Transaction Value ₹1,00,000
+
Basic Customs Duty (10%) ₹10,000
+
Welfare Surcharge (10% of BCD) ₹1,000
Assessable Base for IGST ₹1,11,000
IGST Rate (e.g., 18%) IGST Payable: ₹19,980

sync_alt ICEGATE vs GSTR-2B Matching Dashboard

Real-time tracking of Bill of Entry (BoE) data ingestion from the Customs ICEGATE portal into GST Return GSTR-2B.

Reconciliation Progress 85% Matched
Matched BoE
34 / 40
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Mismatches
4 / 40
error
Pending Portal sync
2 / 40
pending
Bill of Entry Details ICEGATE Value GSTR-2B Value Status
BOE #98231 / 22-Jun ₹1,11,000 ₹1,11,000 MATCHED
BOE #98511 / 24-Jun ₹5,40,000 Not Found ICEGATE ONLY

Common Issues & Solutions

warning Export Bottlenecks
  • • Shipping Bill mismatch in GSTR-1 filings.
  • • Delays in claiming IGST refund due to Bank details mismatches.
  • • Wrong HSN/SAC classification causing customs holds.
  • • ITC blockages due to non-compliant domestic suppliers.
Solution: Setup auto-reconciliation between GSTR-1, GSTR-3B, and ICEGATE shipping bills monthly.
warning Import Bottlenecks
  • • IGST credit paid on Bill of Entry not showing in GSTR-2B.
  • • Incorrect valuation of goods in customs declarations.
  • • Missed ITC due to time limits under Section 16(4).
  • • Confusion over RCM applicability on ocean freight.
Solution: Perform weekly matching of Bills of Entry from ICEGATE with GSTR-2B data.

GST Compliance Checklist

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LUT Compliance

Submit LUT online before execution of first export invoice.

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HSN Verification

Verify 8-digit HSN codes are declared in shipping bills.

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Return Timelines

File GSTR-1, GSTR-3B by the 11th and 20th respectively.

Why It Matters?

Smooth
Working Capital
Faster
Refund Processing
Seamless
ITC Flow
Lower
Litigation Risk