How SaaS exporters claim GST refunds
Most service exporters who file a Letter of Undertaking pay no IGST on exports, so the first question is whether there is a refund to claim at all. There is, when you carry unused input tax credit from GST paid on cloud bills, tools, rent or contractors, and also when you export without an LUT and pay IGST you later want back.
Two kinds of refund
- On the LUT route: a refund of input tax credit you could not use, because you charged no output GST to set it against.
- On the pay-IGST route: a refund of the IGST you paid on the export invoice.
The routes are compared in the LUT guide. This article covers the claim.
How the credit refund is worked out
Under Rule 89(4) of the CGST Rules, the refund of unused credit on exports without payment of tax is
Refund = turnover of zero-rated supplies × net input tax credit ÷ adjusted total turnover
A worked example. Net credit ₹2,00,000, export turnover ₹60 lakh, adjusted total turnover ₹80 lakh. Refund is ₹2,00,000 × 60 ÷ 80, which is ₹1,50,000. If everything you earn is export revenue, the fraction is one and you claim the full credit. Adjusted turnover has its own definition, so have your CA confirm the inputs.
Documents you need
- Export invoices with the LUT declaration or the IGST paid.
- A FIRA for each payment, as proof that foreign currency reached you. What a FIRA is and FIRA versus FIRC cover the certificates.
- GSTR-1 and GSTR-3B for the period, which must agree with the invoices.
- The refund application and supporting statements, filed on the GST portal.
The time limit is two years from the relevant date, which for services is generally the date you receive payment. Do not wait for the last month.
Why claims get stuck
Most rejections come from small mismatches. The client name on the FIRA differs from the invoice. The amount does not match after a bank deduction. The purpose code describes a different service. Invoices without the LUT line, or returns filed late, also slow a claim. Since October 2026, service exporters also declare exports monthly, and a gap between that declaration and the refund file raises questions, as the EDF guide explains.
Is it worth claiming
If the unused credit is small, the time and professional fees can exceed the refund, and many SaaS companies let it ride against future domestic sales. If the credit is large, the cash is worth recovering, especially in a growing company. Have your CA size it first. The GST for freelancers with foreign clients guide explains registration and zero-rating. The tax notice red flags guide shows what mismatches look like from the department's side.
A clean FIRA on every payment, with the client name and purpose code you expect, shortens every step. DashX issues one on each payment. This article is general education and not tax advice.
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