GST Saving #1: Opt for Quarterly GST Returns (QRMP Scheme)
If your annual turnover is under ₹5 crores, you’re eligible for the QRMP (Quarterly Return Monthly
Payment) scheme. Instead of filing GSTR-1 and GSTR-3B every month, you file quarterly —
significantly reducing your compliance burden in the initial years.
How the QRMP Scheme Works:
You still pay GST monthly using PMT-06 by the 25th of each month. But the detailed return filing
happens only once per quarter.
How to Opt-In to QRMP:
- Log in to the GST Portal
- Navigate to Services → Returns → Opt-in for Quarterly Return
- Select the quarter you wish to start from
- Deadline: First month of each quarter (January, April, July, October)
Best for: Startups, small businesses, service providers with straightforward transactions
GST Saving #2: Challenge Duplicate Show Cause Notices (Section 6(2)(b))
Received two Show Cause Notices (SCNs) for the same matter and same period — one from DGGI or
Central GST and another from State GST? The second SCN is legally unsustainable.
Legal Basis for Challenging the SCN:
Section 6(2)(b) of the CGST Act clearly states: once one authority (Central or State) initiates proceedings on a subject matter, the other authority is barred from initiating parallel proceedings.
What to Do When You Receive a Duplicate SCN:
1. File a reply to the second SCN citing Section 6(2)(b) and the Supreme Court Judgement in the case of Armour Security 2025 (7) TMI 1181.
2. Request that the second SCN be dropped outright
3. Alternatively, request consolidation of proceedings before one authority
GST Saving #3: Claim Inverted Duty Structure Refund
If you manufacture goods taxed at 5% or 12% GST but your key inputs attract 18% GST, you’re
entitled to a refund of accumulated Input Tax Credit (ITC).
Eligibility for Inverted Duty Refund:
- You must be a manufacturer — traders are not eligible
- Output GST rate must be lower than input GST rate
- Certain items are excluded (e.g., woven fabrics, certain footwear, etc)
How to File for Inverted Duty Refund:
- Log in to GST Portal
- Go to Services → Refunds → Application for Refund
- Select Refund Type: “Refund of ITC on account of inverted tax structure”
- File RFD-01
GST Refund Formula:
Maximum Refund = (Turnover of inverted rated supply × Net ITC ÷ Adjusted Total Turnover) − Tax
payable on inverted rated supply
Deadline: File within 2 years from the end of the financial year
Processing Time: Typically 60 days
GST Saving #4: EOUs Can Now Claim IGST Refund on Exports (Oct 2024 Update)
If you’re an Export Oriented Unit (EOU), you were earlier barred from claiming IGST refund on
exports. You had to mandatorily use the bond/LUT route for zero-rated exports.
What Changed for EOUs in October 2024:
From October 2024, this restriction has been removed. EOUs can now:
- Export on payment of IGST
- Claim refund via shipping bill — just like regular exporters of goods
- Claim refund via RFD-01 if you are exporter of services
When the IGST Refund Route Is Useful:
- Your ITC accumulated on capital goods which is not eligible for refund under LUT route
- You want faster refund processing (typically 7–15 days via ICEGATE( for goods) vs. 60+ days for ITC refund)
Action: Review your export strategy and discuss with your CA whether the IGST refund route is more beneficial than the LUT route for your specific situation.
GST Saving #5: Use ITC on Capital Goods for IGST on Export of Services
GST law permits utilization of ITC on capital goods for payment of IGST on exported services —
there’s no restriction. If your refund of IGST paid on export of services is rejected or stuck because
you used capital goods ITC for payment, cite Section 54(8)(a) of CGST Act, Rule 89 and Rule 96(9) of
CGST Rules, and CBIC Circulars 37/11/2018-GST and 59/33/2018-GST, which confirm the eligibility of ITC on capital goods as well for paying the IGST on exports
How to Implement ITC on Capital Goods:
- Maintain separate records of capital goods ITC in your ITC register
- Keep copies of capital goods invoices readily available for refund processing
- If refund is rejected or queried, file a written submission citing the above provisions
- Escalate to the GST Appellate Authority if the adjudicating authority still objects
GST Saving #6: Get Non-STP Registration from STPI
Exporting IT or IT-enabled services (ITES)? You don’t need to be physically located in a Software
Technology Park to register with STPI.
Benefits of Non-STP Registration:
- SOFTEX filing facility for reporting foreign exchange remittances
- Easier to get BRC, which is a mandatory document for claiming GST refund on export of services
How to Apply
1. Visit the STPI Portal
2. Submit online application with company documents
3. Approval typically takes 15–20 working days
Frequently Asked Questions
What is the inverted duty structure refund in GST?
Inverted duty structure refund applies when the GST rate on your inputs (e.g., 18%) is higher than the GST rate on your outputs (e.g., 5% or 12%). Manufacturers can claim a refund of accumulated ITC by filing RFD-01 on the GST portal. This is not available for traders. File within 2 years from the end of the financial year.
Can EOUs claim IGST refund on exports?
Yes, from October 2024, Export Oriented Units (EOUs) can export on payment of IGST and claim a refund via shipping bill — just like regular exporters. The earlier restriction requiring the bond/LUT route has been removed.
What if I receive two SCNs for the same GST issue?
If both Central and State GST authorities issue SCNs for identical matters and periods, the second SCN is legally unsustainable under Section 6(2)(b) of the CGST Act. File a reply citing this provision and request that the second SCN be dropped.
Need Help Implementing These Savings?
Every business has a unique GST and Customs profile. What works for a manufacturer may not apply to a service exporter or trader.If you’d like us to run a quick diagnostic on your GST and Customs position, reach out with your
GSTIN and a brief description of your business activity. We’ll flag specific opportunities you might be missing.