TaxTMI 
TaxTMI 
We are manufacturer exporter registered under GST. We are exporting our goods to various countries. We want to know that, whether Application for Refund of ITC on Export of Goods & Services without payment of ITC under LUT as per Section 54(3) (i) and Rule 89(4) of CGST Act 2017 is compulsory / mandatory??
We have blocked / carry forward proportionate ITC in Electronic Credit Ledger as per formula given in Rule 89(4) of CGST Rules & to be applied for ITC refund in GST RFD-01A form on common portal. Kindly advice whether it is mandatory or optional ??
Application for Refund of ITC on Export of Goods & Services without payment of ITC
27 Aug 2018 
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Refund of Input Tax Credit optional when goods/services exported under LUT without payment of IGST, claimable under prescribed formula.
Claiming refund of unutilized input tax credit for zero-rated supplies made without payment of IGST under a letter of undertaking is optional; the refund is available under the statutory formula that apportions Net ITC to zero-rated turnover and is claimed via the portal using form RFD-01A, while the alternative is to export on payment of IGST and claim rebate. (AI Summary)
Claiming refund of unutilized input tax credit for zero-rated supplies made without payment of IGST under a letter of undertaking is optional; the refund is available under the statutory formula that apportions Net ITC to zero-rated turnover and is claimed via the portal using form RFD-01A, while the alternative is to export on payment of IGST and claim rebate. (AI Summary)