eBRC for GST Refund on Exports

Exports are zero-rated

Under Section 16 of the IGST Act, exports and supplies to SEZ units are zero-rated. Zero-rated is not the same as exempt: your output tax is nil, but you keep the input tax credit on everything you bought to make the export, and you can recover it. That recovery is the GST refund. The rules sit with the CBIC.

The two refund routes

• Export under an LUT, without paying IGST. You furnish a Letter of Undertaking (Form GST RFD-11) on the GST portal, export without charging IGST, and claim a refund of the unutilised input tax credit. This is the common route for exporters who do not want to block working capital in tax.
• Export on payment of IGST. You pay IGST on the export and claim it back as a refund. For goods, this refund is often driven by the shipping bill and export manifest data.

Where the eBRC comes in

Realisation evidence matters most for the export of services. Under GST, a supply of services counts as an export only if, among other conditions, the payment is received in convertible foreign exchange. That is exactly what an eBRC, or a FIRC, evidences. Refund statements for services typically ask for that bank realisation detail, and courts have held that a refund on export of services should not be denied where the eBRC or FIRC has been furnished.

Goods and services differ

For goods exported on payment of IGST, the refund frequently flows from customs data once the shipping bill and export manifest are filed. For services, and for input tax credit refunds under the LUT route, the realisation proof is central, which is why keeping clean eBRCs and FIRCs is not just a DGFT concern but a GST one. If you are unsure which document a claim needs, read FIRC vs eBRC.

Keep realisation clean, and the refund follows

The habits that keep incentive money moving keep refund claims moving too. Match each remittance to its export while the paperwork is warm, watch the purpose code and currency, and keep the certificate ledger exportable. See IRM housekeeping and purpose codes and currency codes.

Refund paperwork moves faster when realisation evidence is already a ledger; start free and keep every certificate export ready.

Frequently asked questions

Is an eBRC required for a GST refund on exports?

For export of services, realisation evidence such as an eBRC or FIRC is typically required, because payment in convertible foreign exchange is a condition for the supply to count as an export. For goods exported on payment of IGST, the refund is often driven by shipping bill and manifest data instead.

What is an LUT in GST?

A Letter of Undertaking, filed in Form GST RFD-11 on the GST portal, lets you export without paying IGST and then claim a refund of unutilised input tax credit.

What does zero-rated supply mean?

Under Section 16 of the IGST Act, exports and SEZ supplies are zero-rated: output tax is nil but you keep and can recover the input tax credit, unlike an exempt supply.