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
18 Apr 2020 
29 Replies 
75826 Views Asked by
Export without LUT treated as procedural lapse-zero-rating and refunds may be allowed when exports and foreign exchange receipt are established.
Where export of services is established by documentary proof and realization of foreign exchange, non-filing of a Letter of Undertaking (LUT) is a procedural lapse; administrative circulars permit condonation or ex post facto acceptance of LUT and processing of refund claims, subject to verification of genuineness and facts, though repeated non-compliance may attract departmental action. (AI Summary)
Where export of services is established by documentary proof and realization of foreign exchange, non-filing of a Letter of Undertaking (LUT) is a procedural lapse; administrative circulars permit condonation or ex post facto acceptance of LUT and processing of refund claims, subject to verification of genuineness and facts, though repeated non-compliance may attract departmental action. (AI Summary)