Exporters in Delhi are entitled to a refund of unutilised input tax credit or of IGST paid on zero-rated supplies, but the process is procedural and document-heavy. A single mismatch between the shipping bill, GSTR-1 and GSTR-3B is enough to trigger a deficiency memo and push your refund back by weeks. This guide walks through the GST refund process for exporters in Delhi and where most claims go wrong.

Delhi is the national capital and one of India’s largest trading, services and export hubs, with businesses ranging from wholesale traders to large exporters and multinational offices, which means a significant share of the local business community — from manufacturers to trading houses — relies on a smooth refund cycle to keep working capital moving.

Two Routes for Claiming a Zero-Rated Supply Refund

Under Section 16 of the IGST Act, exports are treated as zero-rated supplies, and an exporter can choose one of two routes:

  • Export under LUT/Bond, without payment of tax — the exporter claims a refund of accumulated, unutilised input tax credit (ITC) by filing Form RFD-01.
  • Export with payment of IGST — the IGST paid on export is refunded automatically once the shipping bill and export general manifest (EGM) data match with GSTR-1 and GSTR-3B; this route does not need a separate RFD-01 application for goods exports.

Step-by-Step Refund Process for Delhi Exporters

  • File a Letter of Undertaking (LUT) in Form GST RFD-11 at the start of the financial year if exporting without payment of tax.
  • Report export invoices correctly in GSTR-1, with the correct shipping bill number, port code and invoice value.
  • File GSTR-3B for the corresponding period, ensuring the export turnover matches what was declared in GSTR-1.
  • For the LUT route, file Form RFD-01 on the GST portal along with a statement of invoices, and upload supporting documents such as the shipping bill, bank realisation certificate (BRC/FIRC) and a CA certificate where applicable.
  • The department issues an acknowledgement in RFD-02; if documents are incomplete, a deficiency memo in RFD-03 is issued and the claim must be refiled.
  • Where the claim is in order, up to 90% of the claimed amount is granted provisionally within 7 days in Form RFD-04, followed by a final sanction order in RFD-06.
  • For the IGST-paid route, refund is processed directly through ICEGATE once shipping bill data reconciles with GST returns — no separate portal application is generally required for goods.

Documents Exporters in Delhi Typically Need

  • Copy of the LUT (Form GST RFD-11), if exporting without payment of tax.
  • Shipping bills and export invoices for the claim period.
  • Bank Realisation Certificate (BRC) or Foreign Inward Remittance Certificate (FIRC).
  • Statement of invoices and a declaration that the goods have not been subjected to export duty.
  • GSTR-2A/2B based ITC reconciliation supporting the claimed credit.
  • Cancelled cheque or bank statement for refund credit.

Common Reasons Refund Claims Get Delayed or Rejected in Delhi

  • Mismatch between the invoice value declared in GSTR-1 and the value on the shipping bill.
  • Shipping bill or port code entered incorrectly at the time of filing GSTR-1.
  • Claiming refund of ITC that has not actually been reflected in GSTR-2B.
  • Bank account details not validated or linked correctly on the GST portal.
  • Filing the refund application after the two-year limitation period from the relevant date under Section 54 of the CGST Act.
  • Incomplete responses to a deficiency memo, which restarts the processing clock.

Businesses and Industrial Areas in Delhi We Support

We assist export-oriented businesses across Delhi, including units based in:

  • Connaught Place — the capital’s central business district
  • Karol Bagh — a dense wholesale and retail trading market
  • Nehru Place — Asia’s largest IT hardware and electronics market
  • Netaji Subhash Place — a growing commercial office hub
  • Okhla Industrial Area — export houses, garment units and light manufacturing
  • Wazirpur Industrial Area — steel, utensils and metal fabrication units
  • Naraina Industrial Area — auto parts and general engineering manufacturers
  • Mayapuri Industrial Area — one of Asia’s largest scrap and auto-parts markets

How KYRA GST Handles Export Refunds for Delhi Clients

Our GST refund service covers the claim end-to-end:

  • Reviewing your LUT status and export documentation before the claim period closes.
  • Reconciling shipping bill, GSTR-1 and GSTR-3B data to catch mismatches before filing.
  • Preparing and filing RFD-01 with the full supporting document set.
  • Tracking the claim through RFD-02, responding to any RFD-03 deficiency memo, and following up to RFD-06 sanction.
  • Escalating to a formal appeal if a claim is wrongly rejected, through our GST litigation team.

You can see our full engagement process and indicative fees on our pricing page, or read GST Services for a related compliance topic.

Refunds for Services Exporters vs Goods Exporters

IT, ITES and consulting businesses in Delhi that export services face a slightly different process from goods exporters. Since there is no shipping bill, the refund claim relies instead on:

  • A valid Letter of Undertaking or bond covering the export of services.
  • Foreign Inward Remittance Certificates (FIRCs) or Bank Realisation Certificates confirming receipt of payment in convertible foreign exchange.
  • A statement establishing that the recipient is located outside India and the place of supply is outside India, as required under Section 2(6) of the IGST Act’s definition of export of services.
  • Reconciliation of the ITC claimed against GSTR-2B for the relevant period, filed through Form RFD-01 on the portal.

Given the concentration of IT/ITES and consulting firms in and around Delhi, we see this category of refund claim regularly and structure the documentation accordingly.

Interest on Delayed Refunds

If a sanctioned refund is not paid within 60 days of the date of receipt of a complete application, Section 56 of the CGST Act entitles the exporter to interest, generally at 6% per annum, from the date immediately after the 60-day period until the date of actual payment. Where the refund arises from an order passed in the exporter’s favour on appeal or review, a higher interest rate of up to 9% may apply. Very few Delhi exporters actually claim this interest, even though it is a statutory right once the delay exceeds 60 days.

Frequently Asked Questions

Q1. How long does a GST refund take for exporters in Delhi?
Where documentation is in order, 90% provisional sanction is expected within 7 days of acknowledgement, with final sanction to follow. In practice, incomplete documentation is the biggest cause of delay beyond this timeline.

Q2. What is the time limit for filing an export refund claim?
A refund claim must generally be filed within two years from the relevant date, as defined under Section 54 of the CGST Act — typically the date of export for goods.

Q3. Can I claim a refund if I exported with payment of IGST?
Yes. For goods exported with payment of IGST, the refund is largely automatic through ICEGATE once your shipping bill and GST return data match, without filing a separate RFD-01.

Q4. What if my refund claim in Delhi was rejected?
A rejected claim can usually be appealed. Our GST litigation team can review the rejection order and file an appeal within the prescribed time limit.

Q5. Am I entitled to interest if my refund is delayed?
Yes. Under Section 56 of the CGST Act, interest is payable if a sanctioned refund is not credited within 60 days of a complete application, though most exporters need to actively pursue this.

If your export refund is stuck or you want your claim reviewed before filing, book a free consultation with our Delhi GST refund team.