Zero-Rated Supply
GST category for exports of goods or services and supplies to SEZ units where the effective GST rate is zero and the supplier may claim refund of accumulated input tax credit.
Regulator
Central Board of Indirect Taxes and Customs (CBIC)
Deadline
Event-triggered
Penalty
Procedural only
Legal basis
Integrated Goods and Services Tax Act, 2017
What is Zero-Rated Supply?
GST category for exports of goods or services and supplies to SEZ units where the effective GST rate is zero and the supplier may claim refund of accumulated input tax credit.
- +GCC entities exporting IT and ITeS services to foreign parent under LUT
- +Eligible for refund of unutilised ITC accumulated due to zero-rated supplies
- +Refund application filed in Form GST RFD-01 within 2 years
Statutory basis
Integrated Goods and Services Tax Act, 2017
Section 16
Enforced by
Central Board of Indirect Taxes and Customs (CBIC)
Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.
The stake
Compliance exposure for Zero-Rated Supply. Skipping or mishandling this compliance carries direct financial and operational consequences.
Why Zero-Rated Supply matters for your GCC
Zero-Rated Supply is a GST requirement for foreign-owned Indian entities and GCCs. Although Zero-Rated Supply is not bound by a single hard deadline, sustained compliance is monitored by Central Board of Indirect Taxes and Customs (CBIC), and missed obligations compound across audit and assessment cycles. Most foreign parents discover Zero-Rated Supply issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.
The 4 ways Zero-Rated Supply goes wrong
Real scenarios from real GCC compliance audits. Each one preventable.
Trap 01
Mismatching figures between GSTR-1, GSTR-3B, and the books, triggering reconciliation notices
Trap 02
Claiming input tax credit on invoices not appearing in GSTR-2B
Trap 03
Missing the monthly deadline and incurring late fees that exceed the actual tax payable
Trap 04
Misclassifying inter-state versus intra-state supplies (IGST vs CGST and SGST)
Done for you
Accounting and Tax
IRPR Network handles Zero-Rated Supply as part of our Accounting and Tax service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.
Our workflow
- 01Identify the trigger event in your GCC operations
- 02Prepare and validate the Zero-Rated Supply filing or compliance step
- 03Submit to the regulator and obtain acknowledgement
- 04Track in your compliance calendar for ongoing or recurring obligations
Concepts connected to Zero-Rated Supply
These terms are filed together, depend on each other, or share regulatory authority.
GST
LUT
Annual undertaking enabling export of goods or services without payment of IGST under bond.
GST
IGST
GST levied on inter-state supplies of goods and services and on imports; collected by the central government and apportioned between Centre and destination state.
GST
Input Tax Credit
Credit of GST paid on inward supplies that can be offset against GST liability on outward supplies, subject to eligibility conditions.
Incentives and Zones
SEZ
Designated zones in India providing tax incentives and procedural concessions to export-oriented units.
Asked about Zero-Rated Supply
3 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.
Need help with Zero-Rated Supply?
IRPR Network manages Zero-Rated Supply as part of Accounting and Tax, with a zero-penalty guarantee.
Explore the serviceQ01What is Zero-Rated Supply and who does it apply to?
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GST category for exports of goods or services and supplies to SEZ units where the effective GST rate is zero and the supplier may claim refund of accumulated input tax credit. For foreign-owned GCCs, Zero-Rated Supply applies to gcc entities exporting it and ites services to foreign parent under lut. IRPR Network handles Zero-Rated Supply as part of our Accounting and Tax service.
Q02What law governs Zero-Rated Supply?
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Zero-Rated Supply is governed by Integrated Goods and Services Tax Act, 2017, specifically Section 16. The compliance is enforced by Central Board of Indirect Taxes and Customs (CBIC).
Q03Who handles Zero-Rated Supply for foreign-owned GCCs in India?
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IRPR Network handles Zero-Rated Supply end-to-end as part of our Accounting and Tax service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.
Handle Zero-Rated Supply the right way, the first time.
Book a 30-minute consultation. We will map your Zero-Rated Supply obligations alongside every other India compliance for your GCC, on one calendar, one retainer.
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