What is GST Refund?
A GST refund is the return of tax that a business has paid or accumulated but does not owe. The GST law allows refunds in several situations, but for service exporters two matter most. If you export under an LUT without charging IGST, the GST you paid on your own purchases (input tax credit) can pile up, and you can claim a refund of that unused credit. If you instead charge and pay IGST on the export, you can claim that IGST back. Both routes follow from export of services being a zero-rated supply under Section 16 of the IGST Act.
For services, refund claims are filed on the GST portal using Form GST RFD-01, and the law sets a time limit, generally two years from the relevant date. Your CA can confirm the relevant date for your case.
Why it matters for exporters
One of the conditions for export of services under Section 2(6) of the IGST Act is that payment is received in convertible foreign exchange, or in Indian rupees where RBI permits. That is why refund claims usually ask for proof of realisation, such as FIRC, FIRA or eBRC details. If your export payment is not realised, or the realisation cannot be tied to the invoice, the refund can get stuck.
The EDF does not change your GST obligations, but a missing EDF or an open EDPMS entry can block your eBRC, which in turn causes GST refund problems. Filing the EDF on time and closing entries promptly keeps the refund trail clean.
Example
Indigo Apps Pvt Ltd exports app development services under LUT. Over October to December 2026 it pays ₹3,60,000 GST on laptops, software subscriptions and office rent but has almost no domestic sales to set it off against. After its export payments are realised and matched, Indigo files RFD-01 for the quarter with invoice-wise realisation details. It used the EDF form tool each month, so every invoice already has a matching record.
Common confusion
A GST refund is not a FEMA process and does not involve your AD bank directly. Read GST refund on export of services for the common delays. This is general information, not tax advice.