Import and Export Under GST: formula sheet

Key formulas

Nature of supply on import

Import of goods or services into India = inter-State supply → IGST

CGST and SGST never apply on imports.

Import of service: conditions

Supplier outside India + Recipient in India + Place of supply in India

All three must be satisfied together.

Assessable value for IGST on imported goods

Value for IGST = Assessable (customs) value + customs duties (BCD + SWS + any other duty such as safeguard or anti-dumping duty), excluding IGST and compensation cess; IGST is computed on this total

IGST is charged on the customs value plus the duties, not on the customs value alone. Compensation cess is levied separately and is not part of the base. Check whether SWS or any other duty applies in the question.

Duty and tax payable at the port on imported goods

Payable at the port = BCD + SWS (if given) + IGST

Follow the order given in the question. SWS is generally calculated on BCD, and IGST comes last. Cash outflow including the price of the goods = Customs value + this amount. Net cost = cash outflow − IGST credit.

Place of supply of imported goods

Location of the importer (section 11, IGST Act)

Applies to imports of goods into India.

Tax on imported services

IGST paid by Indian recipient under reverse charge (section 5(3) read with Notification 10/2017-IGST)

Exception: OIDAR to a non-taxable online recipient in India, where the supplier registers and pays tax (section 14). OIDAR supplied to a registered person in India stays under reverse charge. The recipient takes ITC if eligible.

Instrument for export without IGST

LUT in FORM GST RFD-11 | Bond in FORM GST RFD-11 with a bank guarantee of an appropriate amount (if prosecuted, tax evaded > ₹250 lakh)

Furnished before export to the jurisdictional Commissioner. The same FORM GST RFD-11 covers both the LUT and the bond. It is filed online on the common portal.

Who must furnish a bond with bank guarantee

Prosecuted for an offence where tax evaded exceeds ₹250 lakh and prosecution has been launched

Such a person furnishes a bond accompanied by a bank guarantee of an appropriate amount. The condition is prosecution launched, not merely a notice.

Time limit for goods

Export within 3 months from the invoice date; pay within 15 days after that period expires

Extendable by the Commissioner.

Time limit for services

Convertible foreign exchange received within 1 year from the invoice date; pay within 15 days after that period expires

Rupees are also accepted where RBI permits.

Amount recoverable on default

IGST on the export + interest under section 50(1) from the invoice date to the date of payment

Interest is at the rate notified for section 50(1), which is 18% per annum for this purpose. Unpaid amounts are recovered under section 79.

SEZ supply: status

Supply to SEZ developer or unit (for authorised operations) = zero-rated supply = inter-State supply

Applies to goods, services or both. Tax type is IGST.

Two routes for SEZ supply

Route 1: supply under LUT/bond, no IGST, refund of unutilised ITC | Route 2: pay IGST, refund of IGST paid

The supplier chooses. Where the supplier charges IGST, the SEZ developer or unit receives it as input tax credit on that supply.

Refund of unutilised ITC (zero-rated supply without payment of tax)

Maximum refund = Turnover of zero-rated supply × Net ITC ÷ Adjusted total turnover − Tax payable on such zero-rated supplies

Net ITC means ITC availed on inputs and input services during the relevant period, other than ITC for which refund is claimed separately under the other sub-rules of Rule 89. Capital goods ITC is not included. Turnover of zero-rated supply of goods and of services are taken as separate terms. For a supply to an SEZ, take the invoice value as the turnover of zero-rated supply.

Deemed export: nature

Deemed export = supply of goods manufactured in India, notified under Section 147; normal GST is charged; refund is claimed later

No LUT route. It is not a zero-rated supply by default.

Who claims refund on deemed export

Claimant = supplier OR recipient (not both), subject to Rule 89(2) conditions and the notified category

If the recipient claims, it must give an undertaking that it will not take ITC on that supply, and the supplier must not claim the refund. Check that the supply falls in a notified category.

Time limit and relevant date

Claim within 2 years from the relevant date | Deemed export: relevant date = date on which the return relating to such deemed exports is furnished | SEZ supply: relevant date = as given in the Explanation to section 54 for that type of claim

Apply the general 2-year refund limit. Do not assume one relevant date for all SEZ supplies. It depends on whether the claim is for ITC on a supply under LUT or for IGST paid, so use the matching clause of the Explanation.

Quick revision

• Import of goods or services into India is treated as an inter-State supply, and IGST is levied on it.
• Export and supply to an SEZ developer or unit are zero-rated supplies under the IGST Act.
• A zero-rated supply can be made under LUT or bond without paying IGST, or with payment of IGST followed by a refund claim.
• A registered person who intends to supply goods or services as zero-rated without payment of IGST may furnish an LUT. The exception is a person who has been prosecuted for an offence under the CGST Act, the IGST Act or any other law involving tax evasion of ₹250 lakh or more, where the prosecution has been launched. That person furnishes a bond with a bank guarantee.
• Export of services needs all five conditions: the supplier is in India; the recipient is outside India; the place of supply is outside India; payment is received in convertible foreign exchange (or in Indian rupees where RBI permits); and the supplier and recipient are not merely establishments of a distinct person.
• Place of supply decides whether a service is an export, so check it before concluding.
• Exports with payment of IGST give a refund of the IGST paid. The ITC is used to pay that IGST, so the refund of IGST paid is the only route for that supply.
• Exports without payment of tax (under LUT or bond) allow a refund of unutilised ITC on inputs and input services. Refund of unutilised ITC on capital goods is not allowed (Section 54(3) of the CGST Act).
• The refund of unutilised ITC follows a prescribed formula, so apply it with the correct turnover and ITC figures.
• Deemed exports under Section 147 of the CGST Act are notified supplies of goods that are treated as deemed exports even though the goods do not leave India. They are not zero-rated under the IGST Act.
• Tax is paid on deemed exports. Refund of that tax is claimed under Section 54 of the CGST Act read with Rule 89(2), by the recipient or the supplier as notified.
• Customs duty and IGST both apply on import of goods, so keep the two apart in any computation.

Common mistakes

• Charging CGST and SGST on imports. Fix: Remember that import is an inter-State supply, so only IGST applies.
• Calculating IGST on the customs value alone. Fix: Add basic customs duty and other duties to the value first, then apply the IGST rate.
• Counting the 3 months or 1 year from the shipping bill date or the date of the contract. Fix: Rule 96A counts from the date of issue of the export invoice. Start the clock there.
• Applying the 1-year limit to goods or the 3-month limit to services. Fix: Goods: physical export within 3 months. Services: receipt of foreign exchange within 1 year.
• Treating deemed exports as zero-rated supplies that can be made under LUT without tax. Fix: Deemed exports carry normal GST. Refund is claimed afterwards. The LUT option is for zero-rated supplies such as exports and SEZ supplies.
• Saying services supplied to an EOU or Advance Authorisation holder are deemed exports. Fix: Deemed exports are supplies of goods manufactured in India. Services do not qualify.

Exam tips

• In MCQs, first check the location of supplier, recipient and place of supply. Many options differ only on this.
• For numerical questions, show duty, IGST base and IGST as three separate lines. This secures working marks.
• Write that import is an inter-State supply at the start of any theory answer. It is a quick scoring point.
• In a case with several imports, tag each as goods or services before calculating anything.
• State the ITC conclusion at the end, separating IGST (creditable) from customs duty (not creditable).
• Write the rule in provision-facts-conclusion form. Name Rule 96A, state the facts, then give the amount and dates.
• Show the date working line by line: invoice date, deadline, payment date. Examiners give marks for each.
• In interest sums, state the rate (18% per annum) and the day count. Round to the nearest rupee at the end.