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IT Services / Software Export GST

Tech Services Exporter — GST Refund on Zero-Rated Supplies

A 100%-export software LLP had working capital trapped in accumulated input tax credit. We built a disciplined refund cycle that recovered roughly ₹18 lakh and lifted cash flow.

Client Type
LLP | Software Export
Annual Turnover
₹15 Crore
Location
Pune · Hyderabad
Engagement
GST Refund Recovery (Zero-Rated)
The Challenge

Zero-rated exports, non-performing credit.

The firm exported 100% of its services to the US, all of it zero-rated — yet it was paying substantial GST on domestic inputs like high-end server costs, office rent, and professional fees. With no domestic sales to offset against, the firm had accumulated a large Input Tax Credit balance that simply sat on the balance sheet as a non-performing asset, quietly trapping working capital. The task was to convert that dormant credit back into cash through a systematic refund framework.

Our Approach

How we unlocked the working capital.

01

LUT Compliance

We filed a Letter of Undertaking so the firm could continue exporting without paying IGST upfront.

02

RFD-01 Management

We managed the quarterly filing of Refund of Unutilised ITC (RFD-01) applications with surgical precision.

03

Forensic Documentation

We matched Foreign Inward Remittance Certificates (FIRC) with every export invoice — the conclusive proof of export of service the law requires.

04

Deficiency Memo Resolution

We resolved complex deficiency memos that challenged the place of supply or tried to misclassify the firm as an intermediary, successfully defending its status as a primary service exporter.

Expertise Delivered

The capabilities we brought to bear.

LUT & Zero-Rated Exports

Exporting without upfront IGST, preserving cash from the outset.

RFD-01 Refund Cycle

A disciplined quarterly rhythm for unutilised-ITC claims.

FIRC – Invoice Matching

Export-of-service proof tied to every single invoice.

Place-of-Supply Defence

Intermediary misclassification rebutted, exporter status upheld.

Key Outcomes

The results we delivered.

Approximately ₹18 lakh in previously trapped ITC recovered
Operating cash flow improved by 15% through a disciplined refund cycle
An administrative burden turned into a streamlined, repeatable process
Recovered capital fed back into growth and server infrastructure

For service exporters, GST refunds are not 'found money' — they are a legitimate component of operating margin that must be claimed systematically.

— NDS Advisors

Exporting services with trapped ITC?