Export with payment of IGST

[Sandeep Anand]

Sir,

Can we utilize accumalated ITC for payment of Export IGST (Export with payment of IGST) ?

Sandeep V Anand

[Madhavan iyengar]

Yes u can use the accumulated ITC for exports on payment of IGST. It is presumed that the accumulated ITC includes only eligible ITC ( excluding negative list)

since you have not applied for a LUT u have to go for payment of IGST

U can also apply for LUT so that you can clear without payment of IGST and claim refund of ITC

[SHARAD ANADA]

You can use accumulated ITC of input, input services and capital goods for payment of IGST on export of goods with payment of tax and you can claim refund of IGST by filing your GSTR 1 with with correct export details in table 6A. PL make sure that export details reported in table 6A like bill No. , Bill amount, port code, shipping bill No. And amount of IGST must dot to dot match with respective shipping bill details. Data filled in table 6A in GSTR 1 will match with export data transmitted in icegate site. If both data matches you will get refund automatically in your bank account. No separate refund application is required.

However you can't get refund of IGST on export goods with payment tax if you procure goods under CGST notification 40 (0.05 % + 0.05%) or IGST notification 41 (0.10%).

If you export goods without payment of tax then you can get refund of ITC only of input and input services and not of ITC of capital Goods. For this type of export you have file online refund application in RFD 01A .

So in case of export of goods with payment of tax you will get refund of ITC of capital goods also but in case of export of goods without payment of tax you can't get refund of ITC of capital goods.

AI Summary

Using ITC for IGST on Exports: Refunds Possible Without LUT, But Restrictions Apply for Certain Notifications A user inquired about utilizing accumulated Input Tax Credit (ITC) for payment of Integrated Goods and Services Tax (IGST) on exports. Two responses clarified that accumulated eligible ITC can be used for this purpose. If a Letter of Undertaking (LUT) is not applied for, IGST must be paid, but a refund can be claimed by filing GSTR-1 with accurate export details. The refund process is automatic if export data matches across systems. However, refunds are not available for exports under certain CGST and IGST notifications. Exports without tax payment allow ITC refunds only for inputs and input services, not capital goods.