Zero-rated exports refer to products or services exported outside India without paying any taxes under the GST Act. Essentially, these goods or services are taxed at a flat 0% rate under the GST framework.

Their significance lies in their role as a strategic tool to promote Indian exports globally. By relieving Indian exporters of the tax burden, the government can facilitate competitive pricing, thereby enhancing sales across multiple foreign countries.

However, it's important to note that zero rates on exports are applicable only to finished products and not to those used in the production of finished goods.

To claim zero rates on exports under the GST Act, certain conditions must be met:

Being a registered GST dealer.

Supplying goods or services outside Indian territory.

The recipient of the exported goods or services resides in a foreign country.

💱 Payment in exchange for the supplied goods or services is received in foreign currency.

The product or service is eligible for classification as a zero-rated export.

Filing export declaration as a bond or LUT (Letter of Undertaking) to the GST authorities. 🔖