TaxTMI 
TaxTMI 
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 ?
Query on GST Refund
12 Feb 2021 
5 Replies 
1797 Views Asked by
Input tax credit utilization permitted for past-period credits; exporters may pay IGST and seek refund despite having LUT.
A taxpayer exporting services may utilize prior-year input tax credit to pay IGST on exports and claim refund; execution of a Letter of Undertaking does not bar exporting on payment of IGST. There is no statutory time limit on the utilization of input tax credit, though tax authorities may raise objections that a refund claim is time-barred or question payment after furnishing an LUT. Credits relating to capital goods may influence whether to pay IGST and seek refund or pursue an unutilized credit refund. (AI Summary)
A taxpayer exporting services may utilize prior-year input tax credit to pay IGST on exports and claim refund; execution of a Letter of Undertaking does not bar exporting on payment of IGST. There is no statutory time limit on the utilization of input tax credit, though tax authorities may raise objections that a refund claim is time-barred or question payment after furnishing an LUT. Credits relating to capital goods may influence whether to pay IGST and seek refund or pursue an unutilized credit refund. (AI Summary)