Dear experts,
One of my clients exporting drug medicine through airway which is purchasing within India and paying GST tax. Further, he realise the payment through the aggregator who is also in India and by paying only INR to my client. However, the goods will be exported directly to the foreign buyer with invoice and mentioning their name & address.
In this scenario, my query is that,
1. whether he is eligible to obtain LUT?
2. Whether he can apply for refund u/s 54 of GST Act.
Thanks in Advance.
Client Seeks GST Refund and LUT for Exports; Clarification on Section 54 Refund and Aggregator Term Change. A client exporting medicines purchased within India and paying GST seeks advice on eligibility for a Letter of Undertaking (LUT) and refund under Section 54 of the GST Act. The reply clarifies that LUT acceptance for exports is permissible if payments adhere to RBI guidelines, regardless of whether they are in Indian currency or foreign exchange. A refund under Section 54 is possible, but a disclaimer certificate is needed. No LUT is required for tax-paid goods, as its purpose is to safeguard government revenue. The term 'Aggregator' in GST has been phased out and is now associated with services like Uber and Ola. (AI Summary)
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