TaxTMI 
TaxTMI 
TaxTMI 
What can be done now of the client has made export of services stating that he has LUT for Fy 19-20 and while applying for FY 20-21 he got to know that he did not apply for LUT in FY 19-20 and has made export supplies in FY 19-20.. He has received all the proceeds in time. Paying igst and taking refund is one option but it will cost interest. What could be the possible solution other than paying IGST and claiming refund.
LUT not applied but export of services made
Harshit Sanghvi
Client Faces Costly IGST Due to Unfiled LUT for 2019-20; Experts Urge Consideration of Procedural Lapse A client exported services claiming to have a Letter of Undertaking (LUT) for the fiscal year 2019-20 but later realized it was not filed. Despite receiving proceeds timely, paying IGST and claiming a refund is costly due to interest. Experts suggest that since there's no revenue loss, it's a procedural lapse, and paying IGST may not be necessary. They advise using circulars that support the view that benefits shouldn't be denied due to procedural lapses. The department may condone delays in filing LUTs if exports are substantiated. The forum emphasizes careful future compliance to avoid penalties. (AI Summary)