Reporting the export turnover in GSTR9 and 9C

[SATYAPRASAD KOLLURU]

Sir,

One of my client has made service exports during 2017-18 and 2018-19 without payment of GST and without taking any LUT. The same is shown in 3.1(b) in the GSTR-3B. What is the treatment to be given to this issue in GSTR-9. Whether IGST has to be paid and make a claim for refund now.

[Rajagopalan Ranganathan]

Sir,

Since you had exported the goods without payment of IGST and without filing LUT with proper officer, it will amount export without payment of IGST. Now you have to pay IGST with interest. The claim of refund is subject to the provisions of rule 96 of CGST Rules. However the department may take action against you for exporting the goods without payment of IGST.

[Rajendra Prasad]

Dear Mr Satya Prasad,

Circular No. 37/11/2018-GST Dated 15th March 2018:

Please refer to the point no. 4 of the above circular (pasted below) where as it was mentioned that it can be condoned. Please refer to the above circular.

4. Exports without LUT: Export of goods or services can be made without payment of integrated tax under the provisions of rule 96A of the Central Goods and Services Tax Rules, 2017 (the CGST Rules). Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero rated supplies. A detailed procedure for filing of LUT has already been specified vide Circular No. 8/8/2017 –GST dated 4th October, 2017. It has been brought to the notice of the Board that in some cases, such zero rated supplies have been made before filing the LUT and refund claims for unutilized input tax credit have been filed.

4.1. In this regard, it is emphasised that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex post facto basis taking into account the facts and circumstances of each case.

[KASTURI SETHI]

No circular can override the Act. Such lapse cannot be repeated. It must not be made permanent practice taking shelter of circular. Circular gives just 'temporary relaxation' . inasmuch as circular has no statutory force.

[PAWAN KUMAR]

dear sir, as per my view you need to report the IGST in GSTR-9 and 9C and pay the IGST with interest. later apply for refund of such IGST paid on export. This is the best option because provision prescribed under law is to obtain LUT first and export thereafter. the circular only express that on case basis ex post facto condone may be allowed but it is not sure whether you will be getting relief. rather you should pay the taxes and claim refund.

[KASTURI SETHI]

Fully agree with Sh.Pawan Kumar Ji. Nicely explained.

AI Summary

Client Faces IGST Payment with Interest for 2017-19 Exports; Refund Possible After Reporting in GSTR-9 A client exported services during 2017-18 and 2018-19 without paying GST and without a Letter of Undertaking (LUT). The issue is how to report this in GSTR-9 and whether Integrated GST (IGST) should be paid now with a refund claim. One response suggests paying IGST with interest and applying for a refund, noting potential departmental action for non-compliance. Another cites a circular allowing for ex post facto LUT filing, but warns against relying on it permanently. The consensus is to report IGST in GSTR-9, pay it with interest, and then seek a refund.