Best Accounting Software for Exporters – GST, LUT, Refund & Compliance Explained

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Introduction

Export businesses in India operate under a completely different accounting and GST framework compared to domestic traders. While exports are treated as zero-rated supplies, exporters still face complex compliance requirements related to GST, LUT, refunds, foreign currency accounting, and documentation.

Many exporters struggle with:

• GST return filing
• LUT compliance
• Input Tax Credit (ITC) refunds
• Invoice documentation
• Foreign currency transactions
• Reconciliation errors

Without proper accounting software, these processes become time-consuming and risky.

That’s why most exporters today rely on advanced accounting software like TallyPrime, supported by cloud access and expert implementation.

This article explains how exporters can manage GST, LUT, refunds, and statutory compliance using the right accounting software, and why TallyPrime is widely preferred by Indian exporters.

Understanding Export Accounting in India

Export accounting is different from domestic sales because:

• Exports are zero-rated under GST
• No GST is charged on export invoices
• ITC must be claimed as refund
• Foreign currency accounting is involved
• Documentation must match GST returns

A small mistake can lead to refund rejection or GST notice.

Common Challenges Faced by Exporters

Exporters commonly face problems such as:

• Confusion between taxable and zero-rated supplies
• LUT filing delays
• ITC mismatch during refund claim
• Incorrect invoice formats
• Foreign exchange rate differences
• Delay in GST refunds
• Complex reconciliation

These challenges increase compliance burden and block working capital.

Why Exporters Need Specialized Accounting Software

Generic accounting methods cannot handle export-specific requirements.

Exporters need software that supports:

• Zero-rated GST treatment
• Export invoice format
• LUT tracking
• ITC reconciliation
• Refund reporting
• Foreign currency accounting

This is where TallyPrime becomes highly effective.

How TallyPrime Supports Export Businesses

TallyPrime is designed to handle Indian GST laws along with export compliance requirements.

It supports:

• Export under LUT without payment of tax
• Export with payment of IGST (if applicable)
• Automatic GST classification
• Accurate GST return data
• ITC tracking and reconciliation

All within one integrated system.

Export Invoice Management in TallyPrime

TallyPrime allows exporters to create:

• GST-compliant export invoices
• Invoices without tax (zero-rated)
• Proper narration for LUT exports
• Party details with foreign currency

This ensures invoice accuracy and audit readiness.

LUT (Letter of Undertaking) Compliance Explained

LUT allows exporters to export goods or services without paying IGST.

However, exporters must:

• File LUT annually
• Maintain proper export records
• Ensure GST returns match LUT exports

TallyPrime helps maintain correct documentation and records for LUT-based exports.

Managing Input Tax Credit (ITC)

Even though exports are zero-rated, exporters can claim refund of:

• GST paid on purchases
• Input services
• Capital goods (as applicable)

TallyPrime helps track ITC accurately and ensures proper reporting in:

• GSTR-3B
• GSTR-1
• Refund applications

This improves refund success rate.

GST Returns for Exporters

TallyPrime supports generation of:

• GSTR-1 with export details
• GSTR-3B with zero-rated supplies
• HSN summary
• Reconciliation reports

Export values automatically reflect correctly in GST returns.

Avoiding GST Refund Rejections

Refund rejections usually occur due to:

• Invoice mismatch
• ITC discrepancy
• Incorrect return data
• Missing documentation

Using proper accounting software reduces these errors significantly.

Foreign Currency Accounting in TallyPrime

Exporters deal with:

• USD, EUR, GBP, AED, etc.
• Exchange rate differences
• Realised and unrealised gains/losses

TallyPrime supports:

• Multi-currency accounting
• Automatic forex gain/loss calculation
• Accurate ledger balances

This ensures correct profit reporting.

Export Documentation Support

While Tally does not replace DGFT or ICEGATE portals, it helps maintain:

• Invoice records
• Party ledger tracking
• Shipment reference details
• Accounting reconciliation

This supports smoother documentation audits.

Importance of Cloud Accounting for Exporters

Export businesses often involve:

• Remote coordination
• CA and consultant involvement
• Multiple locations
• Time-sensitive filings

With Tally on Cloud, exporters can:

• Access data anytime
• Share live data with CA
• Avoid dependency on office system
• Ensure continuity during deadlines

Benefits of Cloud-Based Tally for Exporters

• No hardware dependency
• Secure automatic backups
• Faster compliance
• Remote working support
• Better coordination with consultants

Especially helpful during GST refund season.

Compliance Visibility for Business Owners

With cloud access, owners can:

• Monitor export turnover
• Track pending ITC
• Review GST liability
• Check outstanding payments

This improves financial control.

Ideal for All Types of Exporters

TallyPrime suits:

• Merchant exporters
• Manufacturer exporters
• Service exporters
• Export houses
• Trading exporters

Across all industries.

Why Professional Setup Matters

Export accounting requires:

• Correct GST classification
• Proper ledger configuration
• Accurate return mapping
• Currency setup

Incorrect setup can cause long-term compliance issues.

Hence, exporters must work with an Authorized Tally Partner.

About Binarysoft Technologies

Binarysoft Technologies is a trusted Authorized Tally Partner helping exporters across India implement GST-compliant accounting solutions.

We specialize in:

• Export accounting setup in TallyPrime
• LUT-based export configuration
• GST return alignment
• ITC and refund reporting support
• Tally on Cloud deployment
• Ongoing compliance assistance

Powered by Binarysoft Technologies – Authorized Tally Partner

Location:
1626/33, 1st Floor, Naiwalan, Karol Bagh,
New Delhi – 110005, INDIA

Contact us:
�� +91 7428779101
�� +91 9205471661
�� +91 8368262875

Email:
�� tally@binarysoft.com

Working Hours:
10:00 AM – 6:00 PM (Mon–Fri)

Conclusion

Export businesses require more than basic accounting.

They need accuracy, compliance, documentation control, and refund readiness.

With TallyPrime and cloud-based access, exporters can:

• Manage GST exports efficiently
• Track LUT compliance
• Claim ITC refunds smoothly
• Handle foreign currency accurately
• Maintain audit-ready records

With expert implementation from Binarysoft Technologies, exporters can simplify compliance and focus on growing global business.

Frequently Asked Questions (FAQs)

Q1. Can TallyPrime handle export GST?
Yes, it supports zero-rated export transactions.

Q2. Does Tally support LUT exports?
Yes, exports under LUT can be properly recorded.

Q3. Can ITC refund data be generated from Tally?
Yes, ITC tracking and reconciliation are supported.

Q4. Does Tally handle foreign currency?
Yes, multi-currency accounting is available.

Q5. Is cloud Tally useful for exporters?
Yes, it enables remote access and compliance support.

Q6. Who should configure export accounting in Tally?
Authorized partners like Binarysoft Technologies.