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E-Commerce Export (CSB-V) LUT vs IGST Refund Calculator

Work out export profit per order after courier charges and FX spread, and the cost of the GST wait under LUT or IGST.

Reviewed by CA Apurav GargUpdated Calculated in your browser; copied links include your figures

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Calculator

Note:
Example values — replace with yours.

Your exports

Orders sent by courier under CSB-V.

What the buyer pays, in USD, EUR or similar.

Rupees for one unit of the foreign currency.

How far below spot you are paid.

Costs per order (excl. GST)

Landed cost of the goods.

International courier charges.

Commission and payment charges.

Presets are today’s common rates. Use “Custom rate” for any other rate, including special rates and rates for earlier periods.

Advanced options

Paid to your supplier.

On the courier’s invoice.

On the marketplace or gateway invoice.

From export to the refund of input GST.

From export to the refund of IGST paid.

What borrowed money or your own cash costs you.

Your result

Export contribution a month

₹10,57,200

Exports contribute ₹10,57,200 a month (42.6% of turnover). Financing the GST wait costs ₹5,508 a month by paying IGST and claiming a refund, ₹2,647 less than the other route.

Contribution per order
₹2,114.40
Input GST a month
₹2,20,500
LUT: cost of the wait
₹8,155.48
IGST: cost of the wait
₹5,508.44
LUT and IGST routes, a month
₹ a monthLUTIGST paid
GST paid on exports—₹4,46,796
Of which from the cash ledger—₹2,26,296
Waiting for refund₹2,20,500₹4,46,796
Days waiting9030
Cost of the wait₹8,155.48₹5,508.44

Export of goods or services is a zero-rated supply: either under Bond/LUT with a refund of unutilised ITC, or on payment of IGST with a refund of the tax paid (unless notified as restricted). Export proceeds must be realised within 9 months.

What this tells you

Exports sent by courier under CSB-V are zero-rated for GST. You can export under a Letter of Undertaking and claim back the input GST you paid, or pay IGST on the export and claim that back. Either way, money waits for a refund.

Enter your shipments, price and costs to see the export contribution after the FX spread, and what each refund wait costs at your cost of money.

Assumptions used

  • Product GST rate choices: 0%, 5%, 12%, 18%, 40%, or a custom rate.
  • Costs are entered excluding GST; the input GST on them is refunded under LUT or used against IGST paid on exports.
  • Refund days and the cost of money are your estimates; refunds are assumed paid in full.
  • Export proceeds are assumed realised within 9 months of export.
  • Figures are rounded for display only; the working uses exact values.
Legal references and sources
Exports as zero-rated supplies
Section 16, IGST Act, 2017 read with Rule 89(4) and Rule 96, CGST Rules, 2017 — export of goods or services is a zero-rated supply eligible either under Bond/LUT (with refund of unutilised ITC) or on payment of IGST (with refund of tax paid, unless notified as restricted).
Last verified 27 Oct 2026
Months to realise export proceeds
Foreign Exchange Management (Export of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB), as amended by FEMA 23(R)/(1)/2026-RB with effect from 1 October 2026: nine months from shipment for goods (from the invoice date for services), twelve months for exports invoiced in Indian rupees; earlier shipments follow the period in force on their export date. The AD bank may extend the period under its published policy.
Last verified 27 Oct 2026
Product GST rate choices
Notification No. 09/2025–Central Tax (Rate) dated 17 September 2025, effective 22 September 2025, on the recommendations of the 56th GST Council meeting (nil, 5%, 18% and 40%); verified as on 2 November 2026. Use 'Custom rate' for special rates such as 3% or 0.25%, and for 12% or 28% on sales made before 22 September 2025 (28% plus cess continued on tobacco and pan masala until 31 January 2026).
Effective from 22 Sept 2025 · Last verified 27 Oct 2026 · Official source

How this is calculated

  1. Realised rate = spot rate × (1 − FX spread). Order value = price in foreign currency × realised rate. Turnover = orders × order value.
  2. Contribution an order = order value − product cost − courier charges − marketplace or gateway fee. A month = × orders.
  3. Input GST an order = each cost × its GST rate, added up. A month = × orders.
  4. LUT: cost of the wait = input GST a month × cost of money × LUT refund days ÷ 365.
  5. IGST: IGST paid = turnover × IGST rate, of which input GST covers up to its amount and the rest is paid in cash. Cost of the wait = IGST paid × cost of money × IGST refund days ÷ 365.

Terms used here

Worked examples

Example: 500 shipments a month at $60

Spot ₹84 with a 1.5% spread. Per order: product ₹1,200 (12% GST), courier ₹1,400 (18%), fee ₹250 (18%). IGST 18%, LUT refund in 90 days, IGST refund in 30 days, cost of money 15% a year.

  • Realised rate ₹82.74, order value ₹4,964.40, turnover ₹24,82,200.00.
  • Contribution ₹2,114.40 an order, ₹10,57,200.00 a month (42.6% of turnover). Input GST ₹2,20,500.00 a month.
  • LUT: ₹2,20,500.00 waits, costing ₹8,155.48.
  • IGST: ₹4,46,796.00 paid (₹2,20,500.00 from input GST, ₹2,26,296.00 in cash), costing ₹5,508.44.
  • Paying IGST costs ₹2,647.04 less to finance in this example.

Our FEMA & Cross-Border service covers LUT filings and GST refund claims on exports.

Questions sellers ask

What is the difference between exporting under LUT and paying IGST?

Export of goods or services is a zero-rated supply: either under Bond/LUT with a refund of unutilised ITC, or on payment of IGST with a refund of the tax paid (unless notified as restricted). Under LUT you charge no IGST and claim a refund of the input GST you paid. With IGST you pay tax on the export and claim it back. Reference: Section 16, IGST Act, 2017 read with Rule 89(4) and Rule 96, CGST Rules, 2017 — export of goods or services is a zero-rated supply eligible either under Bond/LUT (with refund of unutilised ITC) or on payment of IGST (with refund of tax paid, unless notified as restricted).

Why can paying IGST cost less to finance?

The IGST paid on exports is usually refunded sooner than a refund of input GST under LUT. A larger amount waiting for a shorter time can cost less. The calculator compares both at your cost of money.

How long do I have to receive the export payment?

Export proceeds must be realised within 9 months of export under the foreign exchange rules, unless extended. Delays can hold up refunds and export benefits.

Which exchange rate should I use?

The rate you are actually paid. Enter the spot rate and the spread your bank or payment gateway takes below it, so the calculator works on the rupees you receive.

Do the refund days in the calculator come from the rules?

No. They are your estimates of how long refunds take for you. Use your own recent refunds, and try a slower case as well.

Want our team to look at these numbers alongside your books?

We keep books, file GST and TDS returns and prepare monthly MIS for D2C and marketplace sellers. Share your figures and we will walk you through what we find.

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Disclaimer

A planning estimate for general information only, based on the figures you enter. It is not professional or tax advice. The rules used here are not yet verified. Refund times vary; check the rules that apply to your goods before you choose a route.

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