Glossary

What is an IGST refund?

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 28 October 2026
Last modified: 30 October 2026
Reading time: 3 min read

Short answer

An IGST refund is the refund of integrated tax paid on a zero-rated supply, such as an export of services.¹ It is claimed under section 16 of the IGST Act, 2017 and section 54 of the CGST Act, 2017.¹³ For services, rule 96(9) of the CGST Rules says the application is filed in FORM GST RFD-01.²

Full form	Governed by	Who needs it	Where it is used	Related terms
Refund of Integrated Goods and Services Tax	IGST Act, 2017, section 16; CGST Act, 2017, section 54; CGST Rules, rules 89 and 96¹²³	Registered exporters who pay IGST on zero-rated supplies instead of using an LUT¹	FORM GST RFD-01 on the GST common portal²⁵	LUT, zero-rated supply, refund of unutilised ITC, FIRC, export of services

Export of services is zero-rated under GST, which means the exporter should not end up bearing tax on it. There are two ways to achieve that, and the integrated goods and services tax (IGST) refund is one of them.¹

What does an IGST refund mean in simple words?

An IGST refund is the money a registered service exporter gets back after paying IGST on an export invoice. Section 16 of the IGST Act makes export of services a zero-rated supply, and section 16(4) allows a notified class of persons or of goods or services to make zero-rated supplies on payment of integrated tax and claim refund of the tax paid, under section 54 of the CGST Act.¹

In short, the exporter pays the tax first and claims it back.

Why does an IGST refund matter for Indian exporters and freelancers?

An IGST refund matters for Indian exporters and freelancers because it is one of the two ways to keep an export free of GST.¹

GST: An exporter either supplies under a bond or Letter of Undertaking (LUT) without paying IGST, or pays IGST and claims a refund.¹
Bank compliance: The refund claim needs remittance evidence for each invoice, such as Foreign Inward Remittance Certificates.⁵

For example, most small exporters, such as a freelance editor or a two-person design studio, file an LUT. A business with large input tax credit, such as an IT company that buys hardware and cloud services in India, may compare both routes with its accountant.

How does an IGST refund work?

An IGST refund works through a notified class and an application. Notification No. 01/2023-Integrated Tax, as amended from 1 October 2023, notifies all goods or services, except certain listed goods, as the class that may export on payment of IGST.⁴ For goods, the shipping bill is deemed to be the refund application under rule 96(1).² For services, rule 96(9) says the application "shall be filed in FORM GST RFD-01" and dealt with under rule 89.²

How do you claim an IGST refund on services?

You claim an IGST refund on services by filing an application with the right documents within the time limit:

Form: FORM GST RFD-01, filed electronically on the common portal (rule 89(1)).⁵
Documents: A statement of invoices with the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates (rule 89(2)(c)).⁵
Time limit: Within two years from the relevant date (section 54(1)).³ For services, the relevant date is the date of receipt of payment in convertible foreign exchange or in rupees where RBI permits, if the service was completed before payment; or the invoice date, if payment was received in advance.³

For example, a consultant who invoiced in June, paid IGST in that month's return and received payment in August would count the two years from August.³

What is the difference between an IGST refund and a refund of unutilised ITC?

An IGST refund returns the tax paid on the export invoice, while a refund of unutilised input tax credit (ITC) returns credit built up when exporting under an LUT without tax.¹

Route	Tax on export invoice	What is refunded	Best for
Under bond or LUT	None	Unutilised ITC	Most small exporters who file an LUT
On payment of IGST	IGST charged and paid	The IGST paid	Businesses that compare both routes with an accountant

The table follows section 16 of the IGST Act.¹

What do people get wrong about IGST refunds?

People most often get wrong eligibility, the claim process and the time limit.¹²³

Eligibility: The supply must meet all five conditions for export of services in section 2(6).¹
Automatic refund: Service exporters must file FORM GST RFD-01.²
Time limit: The two years run from the relevant date for each invoice.³

Refund eligibility depends on facts, so confirm with a GST practitioner.

The terms related to an IGST refund cover the other export route and the evidence needed.

LUT: The undertaking for exports without IGST; see what is an LUT.
Zero-rated supply: The GST treatment of exports; see what is a zero-rated supply.
Export of services: The supply that qualifies; see what is export of services.
FIRC: Refund evidence; see what is a FIRC.

The step-by-step process is in GST refund on export of services, and the trade-offs are in export of services without LUT, IGST paid.

How did we verify this?

We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.

Frequently asked questions

Can a service exporter still choose to pay IGST and claim a refund?+

Yes. Notification No. 01/2023-Integrated Tax, as amended from 1 October 2023, specifies all goods or services, except certain listed goods, as the class that may be exported on payment of integrated tax with a refund of the tax paid.⁴ A service exporter can therefore choose the IGST refund route instead of an LUT.

What is the time limit for an IGST refund on services?+

Section 54(1) of the CGST Act allows an IGST refund application within two years from the relevant date.³ For services, the relevant date is generally the date of receipt of payment in convertible foreign exchange, or the invoice date where payment was received in advance.³ Count the two years for each invoice separately.

What documents are needed for an IGST refund on services?+

Rule 89(2)(c) of the CGST Rules asks a services exporter claiming an IGST refund for a statement containing the number and date of invoices with the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates.⁵ Keep the remittance evidence for each invoice ready before filing FORM GST RFD-01.

Is an IGST refund on services processed automatically, as for goods?+

No. For goods, the shipping bill is deemed to be the refund application under rule 96(1) of the CGST Rules.² For services, rule 96(9) says the IGST refund application shall be filed in FORM GST RFD-01 and dealt with under rule 89, so a service exporter must file a claim.²

Which supplies qualify for an IGST refund?+

An IGST refund applies to zero-rated supplies, such as an export of services, on which the registered person paid integrated tax.¹ The supply must meet all five conditions for export of services in section 2(6) of the IGST Act, since only a zero-rated supply qualifies for the refund under section 16.¹

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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