How to avail Input Credit

[Pinnacle PvtLtd]

Sir:

We are a BPO company having international clients. I mean we export our services and get billed in $. We have taken GST registration but not taken LUT since 2017. Currently we are having 50 lakhs as input credit which were accumulated since April 2019 till date.. I need your valuable suggestion regarding refunding of GST input credit..

Thanks,

Srinivasa

[KASTURI SETHI]

If you have all other export related proofs except LUT, non-filing of LUT cannot be the basis for rejection of refund claim. The purpose of filing LUT which is equal to Bond without security deposit is to safeguard Govt. revenue. If there is no revenue loss, Indeed the department may consider it as procedural lapse. If you have actually exported service and received foreign exchange, there should be no problem. You can also apply for waiver of LUT for the past period inasmuch as there is no logic to execute LUT for the past period especially in view of receipt of export proceeds.

[Shilpi Jain]

Agree with Kasturi sir. Please refer para 44 of Circular No. 125/44/2019-GST, dated 18-11-2019

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

So you could consider writing to the department for getting the delay condoned and file a manual RFD-11.

[Ganeshan Kalyani]

Sir, just to add to the reply given by experts, the input tax credit must be available in Electronic Credit Ledger to ask for refund.

AI Summary

BPO Firm Seeks GST Refund Without LUT Since 2017; Advised to Apply for Waiver and Check Electronic Credit Ledger A BPO company with international clients seeks advice on obtaining a refund for accumulated GST input credit amounting to 50 lakhs since April 2019, despite not having filed a Letter of Undertaking (LUT) since 2017. Respondents advise that the absence of an LUT should not prevent a refund if export services have been provided and foreign exchange received. They suggest applying for a waiver of the LUT requirement for past periods and refer to a circular allowing for the condonation of LUT delays. The company is advised to ensure the input tax credit is available in the Electronic Credit Ledger.