# Refund of Unutilized Input Tax Credit (ITC) on Exports under LUT — Form GST RFD-01

## 1. Overview & Formula (Rule 89(4))
When an exporter ships goods or provides services under a Letter of Undertaking (LUT) without payment of IGST, they accumulate Input Tax Credit (ITC) on raw materials, input goods, and input services used for their export operations.

The exporter can claim a cash refund of this accumulated unutilized ITC by filing **Form GST RFD-01** on the GST portal under the category:
`"Refund of unutilized ITC on account of exports without payment of tax"`.

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## 2. Maximum Refund Amount Formula
Under **Rule 89(4) of the CGST Rules, 2017**, the refund amount is calculated using the following statutory formula:

$$\text{Refund Amount} = \frac{(\text{Turnover of zero-rated supply of goods} + \text{Turnover of zero-rated supply of services}) \times \text{Net ITC}}{\text{Adjusted Total Turnover}}$$

### Variable Definitions:
1. **Net ITC**: Total Input Tax Credit availed on **Inputs** and **Input Services** during the relevant period (excluding ITC on Capital Goods under Rule 89(4) and credits blocked under Section 17(5)).
2. **Turnover of Zero-Rated Supply of Goods**: The value of zero-rated supply of goods made during the period without payment of tax under LUT, capped at **1.5 times the value of like goods domestically supplied** by the same or similarly placed supplier.
3. **Turnover of Zero-Rated Supply of Services**: Aggregate of payments received in convertible foreign exchange during the period for zero-rated services + zero-rated services completed previously where payment was received in the current period, less advances received for services not yet completed.
4. **Adjusted Total Turnover**: Total turnover in a State/UT excluding turnover of exempt supplies other than zero-rated supplies.

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## 3. Mandatory Statement 3A Format
When filing Form GST RFD-01, the exporter must upload **Statement 3A (under Rule 89(4))** containing detailed invoice-level tracking:

| Col 1 | Col 2 | Col 3 | Col 4 | Col 5 | Col 6 | Col 7 | Col 8 | Col 9 | Col 10 |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Sr No** | **Export Type (G/S)** | **Invoice No** | **Invoice Date** | **Invoice Value** | **Port Code** | **Shipping Bill No** | **Shipping Bill Date** | **EGM Ref / Date** | **BRC / FIRC No & Date (Services)** |

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## 4. Required Supporting Documents Checklist
Prepare the following PDF attachments before initiating the RFD-01 application:

- [ ] **Statement 3A**: Filled CSV / Excel template generated from the offline utility.
- [ ] **GSTR-2B Reconciliation**: Proof of inward invoices appearing in GSTR-2B (eligible ITC).
- [ ] **Shipping Bills & LEO Copies**: Copy of Shipping Bills with Let Export Order (LEO) endorsement from customs.
- [ ] **FIRC / BRC (For Services)**: Foreign Inward Remittance Certificates or e-BRC issued by Authorized Dealer (AD) Banks.
- [ ] **LUT Acknowledgement**: Copy of Form GST RFD-11 ARN for the applicable Financial Year.
- [ ] **CA Certificate (Annexure 2)**: Mandatory if the refund claim exceeds ₹2,00,000 to certify that the incidence of tax has not been passed on to any other person (non-unjust enrichment).

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## 5. Post-Filing Lifecyle & Timelines

1. **Filing**: Form GST RFD-01 submitted with DSC / EVC $\rightarrow$ Instant ARN generated.
2. **Provisional Refund (Form GST RFD-04)**: Tax officer sanctions 90% of the claim on a provisional basis within **7 days** of acknowledgement (Section 54(6)).
3. **Deficiency Memo (Form GST RFD-03)**: If data is incomplete, officer issues RFD-03 within **15 days**. Exporter must file a fresh refund application.
4. **Final Sanction Order (Form GST RFD-06)**: Complete sanction order issued within **60 days** from date of receipt of complete application. Interest at 6% p.a. is payable if delay exceeds 60 days (Section 56).