Exporters
Zero-rated supplies, refunds, realisation of export proceeds and transfer pricing for exporters of goods and services. We carry out this work from our Nashik office for clients in the district and elsewhere in Maharashtra.
Last reviewed 1 October 2026
Exporters in Nashik and elsewhere in Maharashtra ship under LUT or on payment of IGST, then wait for refunds and for the bank to record realisation. Many also sell to a related company abroad. When the export file, the GST return and the transfer pricing file disagree, the cost appears as working capital held in refunds and as margin reduced by a later adjustment.
The issues that arise most often are set out below, with the way we work on them from our Nashik office. Types of work are described and no clients are named.
The issues exporters face
Exports from the Nashik belt range from formulations made in Satpur and Sinnar to machined parts from Ambad, switchgear, fresh grapes and onions. A single exporter may, within one year, make zero-rated supplies under GST, wait on bank realisation and invoice a related company abroad. The notes below are general, state the law as it stands at 1 October 2026 and are not advice on any particular set of facts.
Letter of Undertaking and zero-rated supply
Goods and specified supplies may be exported without payment of IGST under a Letter of Undertaking, after which refund of unused credit is claimed. The other route is to pay IGST and claim refund of that tax. In either case the shipping bill, the GST return and the refund application have to describe the same transaction in the same figures.
Refunds and working capital
A refund that is held back keeps working capital out of the business for as long as the query remains open. Most queries begin with a gap between the shipping bill, GSTR-1, the refund claim and bank realisation. Credit that was never eligible should not form part of the claim, since its presence invites scrutiny of the whole amount.
Foreign exchange realisation
Export proceeds have to be realised within the period allowed by the Foreign Exchange Management Act, 1999 and the RBI directions for the type of export. Banks report short or late realisation, and that report can affect incentives and any GST refund that rests on evidence of export. The authorised dealer bank has its own role here. The books and the shipping file must nonetheless support what the bank reports.
Incentives and accounting
Duty drawback, RoDTEP and comparable schemes depend on shipping documents and claims that agree with the books. The scheme rules and the underlying contract govern when an incentive is recognised as income and how GST treats it. Reconciling each incentive separately prevents an unexplained balance from remaining in the balance sheet.
Domestic job work and export packing
Material is often sent to job workers in Ambad or Sinnar before it is shipped, and section 143 of the CGST Act continues to govern that movement. Work-in-progress lying with job workers has to appear in the packing-credit drawings and in the stock statements given to the bank.
How we work with exporters
We start with the shipping and refund file. The related-party trail is examined after that, and the bank's working-capital figures last.
GST, LUT and refunds
Selection of the zero-rated route, consistency across returns and preparation of refund workings. Replies to notices are drafted where a claim is queried. See GST.
Transfer pricing
Arm's length pricing, documentation and the accountant's report. See transfer pricing.
Income tax and foreign-linked reporting
Year-end tax computation and replies to notices, together with disclosure of foreign assets and income where the law requires it. FEMA compliance for remittances stays with the authorised dealer, and the tax and accounting file is kept consistent with that trail. See taxation.
Working capital and stock
Stock and debtor statements, packing-credit drawings and projections, each agreed with the export ledger. See manufacturing finance.
MIS for export margins
Margin by product and by customer, calculated after freight, incentives and the cost of credit. See business advisory.
Export work from Nashik
Pharmaceutical, engineering and electrical units in Satpur, Ambad and Sinnar export regularly, and so do grape and onion businesses in Niphad, Pimpalgaon and Lasalgaon. The sector questions that lie beneath the export file are covered on the pharmaceuticals, engineering, auto components, food processing and agriculture pages.
We visit clients in Nashik district, and we work with exporters elsewhere in Maharashtra from our Nashik office, as the Maharashtra page explains. Where we are a company's statutory auditor, section 144 of the Companies Act, 2013 limits the other services we may provide to that company and to its holding or subsidiary company.
Common questions
Should we export on LUT or on payment of IGST?
Either route can be zero-rated. Under LUT no IGST is paid when the supply is made, and refund of credit is claimed afterwards; where IGST is paid, that tax is refunded. The better choice for a business turns on its credit position, its cash flow and the record of its earlier refund claims. The route selected has to be supported by the documents.
Our customer abroad is a related company. What extra work is required?
Transactions with associated enterprises require arm's length pricing and transfer pricing documentation. Where the thresholds are met, the accountant's report under the Income-tax Act, 2025 is also required. A related buyer therefore calls for evidence of the price, and the export invoice alone will not answer that question.
The refund is delayed. What should we reconcile first?
Match the shipping bill, GSTR-1, the refund application and bank realisation before anything else. Next, confirm that every credit included in the claim was eligible and that the domestic and export turnover shown in the returns agrees with the books.
Who handles FEMA and bank realisation questions?
The authorised dealer bank handles FEMA reporting and follows up realisation. Our work keeps the GST refund file, the books and the tax return consistent with the shipping documents and with the bank's realisation trail. Any gap between those records is closed first.
Other industries: Manufacturing, Pharmaceuticals, Engineering, Auto components, Agriculture and agri-business, Food processing
Where we work: Chartered Accountants in Nashik, Chartered Accountants for businesses across Maharashtra