Query on GST Refund

[VENKAT S]

A Company's main operations are export of services(zero rated).Company has LUT also. Company has GST input in electronic credit ledger pertaining to FY17-18. Now can the company raise an invoice with GST (for export of service) , adjust the input available and claim the same as refund ?

[Rajagopalan Ranganathan]

Sir,

There is no time limit to utilize the input credit. Therefore you can utilize the input credit earned in 2017-18 now for payment of IGST on export of service and can claim the same as refund. However the Department may raise an objection that you have executed LUT and you can export without payment of IGST. For the reason of encashing the input credit earned in 2017-18 you are exporting the service on payment of IGST. Moreover the refund claim will be treated as time barred.

[Shilpi Jain]

There is no time limit for utilization of credit under GST. Further there is no condition that the tax paid on export of service should not pertain to past years. Also, merely having taken LUT will not mean that you cannot export with payment of tax. So in my view you can proceed to export with payment of tax to encash the past credits since there is no specific restriction in the law.

[Ganesh S]

In case you have capital goods credit, it is better to pay IGST and claim the refund than go for un-utilized ITC refund.

[Ganeshan Kalyani]

Yes, you can do export with payment of IGST and claim refund thereof.

[Bhavika Chothani]

Yes the company can do so

AI Summary

Company Can Use GST Input Credits from FY 2017-18 for Export Refunds Despite Potential Department Objections A company primarily engaged in exporting services, which are zero-rated under GST, inquires about utilizing GST input credits from FY 2017-18 to claim a refund. Various contributors confirm that there is no time limit for utilizing input credits, and the company can indeed raise an invoice with GST for export services, adjust the available input, and claim a refund. However, there might be objections from the Department due to the company's Letter of Undertaking (LUT) allowing exports without IGST payment. Despite potential objections, contributors agree that the company can proceed with the refund claim.