GST Export Refund Calculator Under LUT
Exporters can ship under a Letter of Undertaking without paying IGST, which leaves input credit unused in the ledger. Rule 89(4) gives a formula to refund that credit, and this tool applies it to your period.
Your numbers
Free on board value as per the shipping bill.
Value in the tax invoice. The formula uses the lower of FOB and invoice value for goods.
Other turnover in the state for the same period, excluding exempt supplies.
ITC on inputs and input services for the period, excluding credit used for other refund claims.
Your results
Illustrative. Refund eligibility, evidence (shipping bill, BRC/FIRC) and goods subject to export duty are governed by Section 54 and Rule 89. Check current notifications.
Refund as export value grows
Sweeps FOB value of exported goods from 0 to 10000000, holding your other inputs fixed.
Build an export refund pack from ERP data
Optional: ask how to produce period-wise shipping and credit data for refund claims.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Enter the FOB value, the invoice value, domestic turnover, net ITC for the period and your ledger balance. The calculator takes the lower of FOB and invoice value for goods, computes adjusted turnover and applies the formula. The chart shows refund rising with export value when ITC and domestic turnover are held constant, because a larger export share attracts a larger share of credit.
The formula behind it
Refund equals turnover of zero-rated supply of goods and services multiplied by net ITC and divided by adjusted total turnover. Goods turnover is capped at the lower of FOB value and invoice value. Net ITC covers inputs and input services for the period. The refund is further capped at the credit available in the ledger. The alternative route is to pay IGST on exports and claim it back automatically on shipping bill filing and Table 6A of GSTR-1.
- File the LUT before the financial year starts
- Match shipping bills with GSTR-1 export invoices
- Keep BRC or FIRC for foreign exchange proof
- Claim within two years from the relevant date
Worked example
An exporter ships goods worth Rs 50 lakh FOB, invoiced at Rs 52 lakh, with Rs 30 lakh of domestic turnover. Net ITC is Rs 9 lakh. The formula uses Rs 50 lakh as zero-rated turnover and Rs 80 lakh as adjusted turnover, giving 50 over 80 of Rs 9 lakh, or Rs 5.625 lakh. A ledger balance of Rs 7 lakh covers it in full.
Common mistakes
Using invoice value when it is higher than FOB, counting exempt domestic supplies in adjusted turnover, or including credit already claimed through another refund ground all inflate the claim. Mismatches between shipping bill and GSTR-1 invoice numbers also stall refunds.
- Using the higher of FOB and invoice value
- Wrong adjusted turnover
- Shipping bill and GSTR-1 mismatch
- Expired LUT
Frequently Asked Questions
Should I export under LUT or pay IGST?
It is a cash flow decision. Under LUT you pay no IGST but wait for a refund of unused credit. With IGST payment you can claim it back after shipping, which is faster if you have little credit to pay it with. Many exporters with large credit balances prefer LUT.
What documents support a Rule 89(4) refund?
Typically the refund statement, shipping bills, export invoices, bank realisation certificates or FIRC for services, and the LUT acknowledgement. The portal also cross-checks shipping bill data against GSTR-1 and GSTR-3B.
Does the refund cover input services?
Yes for zero-rated exports, net ITC includes inputs and input services, unlike the inverted duty ground. Capital goods credit is generally excluded. Check the current definition before filing.
How long does the refund take?
The law gives 60 days from a complete application for the officer to sanction, but real timelines depend on deficiency memos and verification. Clean data lowers the chance of delay.
If export refund working lives in spreadsheets, we can help pull shipments, invoices and credit by period out of your ERP into a reconciled refund pack.
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