Refund of Inverted Duty & Refund of ITC for export under LUT

[Praveen Nair]

Hi All

Can you please confirm whether we can claim Refund of ITC under Inverted Duty Structure and also Refund of ITC for export done under LUT together, for the same financial year.

Currently we are claiming only LUT ITC refunds whereas the ITC due to difference in output and input tax (Inverted duty) is accumulating.

Let me know if more clarity is required.

Thankyou!

AI Summary

Claiming ITC Refunds: Separate Applications Needed for Inverted Duty and LUT Exports Per CGST Rules 89(4) & 89(5) A user inquired about claiming refunds for Input Tax Credit (ITC) under the Inverted Duty Structure and for exports done under a Letter of Undertaking (LUT) within the same financial year. Respondents advised maintaining separate records for export supplies and transactions under different GST rates. It was noted that separate applications should be filed for each refund type, adhering to rules 89(4) and 89(5) of the CGST Rules, 2017. While both refunds cannot be claimed for the same transaction, different types of refunds can be claimed for separate transactions or periods. Respondents emphasized checking specific rules and circulars for clarity.