Exporting goods from India is thrilling, until it meets compliance.
For Chartered Accountants managing export-led clients, GSTR-1 filing is less of a form and more of a labyrinth. Especially when it comes to zero-rated supplies.
Between the different tables, dual reporting paths (with vs. without IGST), and refund dependencies, GSTR-1 doesn’t just report exports, it decides whether or not your client gets their hard-earned refund.
One wrong table, and you’re looking at months of delays.
So, let’s cut through the chaos.
The Context: Where Export Meets GST Chaos
GSTR-1 is the monthly (or quarterly) statement that captures outward supplies. It includes everything from domestic B2B to exports, deemed exports, and supplies to SEZs.
The headache begins with zero-rated supplies. Because unlike exempt or nil-rated items, zero-rated supplies are GST-free at the point of sale but still eligible for ITC refunds. And that’s when the pressure to file correctly goes through the roof.
So, for every CA handling clients with export operations, one thing is clear:
Mastering the GSTR-1 export sections isn’t optional. It’s survival.
What Are Zero-Rated Supplies (and Why They Matter So Much)?
Zero-rated supplies under GST include:
- Export of goods or services
- Supplies to SEZ developers or SEZ units
These are not exempt. That’s the big difference. Zero-rated supplies let you:
- Avail input tax credit (ITC) on inputs
- Submit claims for refunds of unutilized ITC or IGST paid on these exports
This means exporters get the best of both worlds: no GST output liability + ITC benefits.
GSTR-1 & Export Sales: What Goes Where
This is where things start falling apart.
GSTR-1 has a few key tables related to exports:
| Table | Purpose |
|---|---|
| 6A | Export Invoices |
| 6B | Supplies to SEZ |
| 6C | Deemed Exports |
Each table demands:
- Invoice number and date
- Port code and shipping bill
- Tax rate and taxable value
- Whether IGST was paid or not
Most errors happen when:
- Export invoices get wrongly placed under B2B
- SEZ invoices go to 6A instead of 6B
- Shipping bill numbers are omitted or incorrect
And that tiny mistake? It doesn’t just mess with GSTR-1. It halts refunds under RFD-01.
With Payment vs Without Payment of IGST
Under GST, exports can be carried out in two ways:
1. With Payment of IGST
- You charge IGST on export invoices.
- Pay it via electronic cash/credit ledger.
- Claim for a refund of the tax paid at a later stage.
2. Without Payment of IGST (Under LUT/Bond)
- No GST charged.
- Exports made under Letter of Undertaking (LUT).
- Claim refund of unutilized ITC instead.
Both options are legal. But they require different declarations in GSTR-1:
| Option | Report In | Invoice Marking |
|---|---|---|
| IGST Paid | Table 6A | Mark as “With tax” |
| LUT Route | Table 6A | Mark as “Without tax” |
Choose the wrong tag, and you’re in refund rejection territory.
Shipping Bills, Invoice Numbers & Customs Integration
GST returns don’t work in isolation. Export data must sync with:
- ICEGATE (Indian Customs)
- GSTN
That’s why you need to mention:
- Correct shipping bill number
- Port code (customs location)
- Date of export
Mismatch between GSTR-1 and ICEGATE = delayed refund
The customs system and GSTN are meant to auto-match data. But typos, late uploads, or skipped shipping bill numbers can derail this sync.
Zero-Rated Supplies to SEZ: The Grey Zone
Supplies to SEZ units are considered zero-rated, but they aren't treated the same as exports.
These go under:
- Table 6B in GSTR-1
- Require recipient GSTIN
- Needs to be endorsed by the SEZ officer in order to claim a refund
Common issues include:
- Filing SEZ invoices under B2B or 6A
- Skipping SEZ endorsement
- Charging IGST without documentation
This one’s tricky because SEZ refund rejections aren’t just bureaucratic, they’re often irreversible due to time limitations.
Impact of Errors in GSTR-1 on Refund Processing
Exporters often claim refunds via Form RFD-01. But here’s the kicker:
That claim is only as good as the GSTR-1 data behind it.
Common issues that kill refund timelines:
- Invoice not reflected in GSTR-1
- Shipping bill mismatch
- Tax not paid correctly (if IGST route used)
- Delayed filing past refund deadlines
Case in point:
A client exported goods worth ₹10 lakh. GSTR-1 was filed under B2B instead of reporting it in Table 6A.
Result? ICEGATE didn’t match the invoice. Refund delayed 4 months.
Eventually refiled via amendment but by then, interest costs kicked in.
Tools & Techniques to Simplify the Chaos
Let’s face it: export filing in GSTR-1 is not scalable manually.
Here’s what forward-thinking CA firms are doing:
- Validating shipping bills using Excel or GSTN integration tools
- Maintaining separate export invoice registers
- Running pre-filing validations for table accuracy
- Using automation to fetch data directly from accounting software
How Suvit Can Help
Suvit is built for Chartered Accountants managing high-volume GST operations. It offers GST reconciliation for now.
Here’s what you’ll love:
- Claim maximum ITC through accurate tracking
- Smart GST Reconciliation & Invoice Management
- End-to-end Connectivity with Tally
- 30+ Smart Validations in GSTR-1
Soon, Suvit will also roll out a GST filing feature that auto-fetches customs data, helping you avoid deadlines altogether.
Bonus: You can try Suvit absolutely free, no strings attached.
Start your free trial now!
TL;DR
- Zero-rated supplies = exports + SEZ supplies
- File under correct GSTR-1 tables (6A/6B/6C)
- Choose the right path: IGST paid vs LUT
- Ensure invoice + shipping bill match
- Mistakes delay refunds or block them entirely
- Automation like Suvit can make GST process audit-proof
FAQs
Q1. Are all exports zero-rated under GST?
Yes, exports of goods and services are classified as zero-rated supplies, not exempt or nil-rated.
Q2. Where should SEZ sales be reported in GSTR-1?
They should be reported in Table 6B of GSTR-1 along with the recipient’s GSTIN and SEZ endorsement.
Q3. Can I export without charging GST?
Yes, with a valid LUT (Letter of Undertaking), you can export without paying IGST.
Q4. What happens if I report exports in B2B by mistake?
They won’t sync with ICEGATE, and refund claims under RFD-01 will be delayed or rejected.
Q5. Can export errors in GSTR-1 be corrected after filing?
Yes. You can rectify errors by filing a GSTR-1 amendment in a later return period.
