LUT NOT FILED

[Deepak D]

Dear Sir/Madam, We are the Manufacturers of Rice Mill Machinery and Exported Machines to the Different Countries. During the Financial Year 2020-21 we had Exported a few Machines without payment of Tax, but by oversight, we forgot to File the LUT for the same FY 2020-21. Now the LUT filing is also not available on the Portal.

We had applied for the GST refund of unutilized ITC, the officer is denying the whole refund because of nonfiling of LUT.

Request you to let me know any judgments/caselaws or circulars available with respect to the above issue to claim the GST refund.

Thanks

[KASTURI SETHI]

Refund cannot be rejected because of procedural lapse. Go through this circular

EXTRACT OF CIRCULAR NO.125/44/19-GST dated 18.11.19

44. Export of goods or services can be made without payment of Integrated tax under the provisions of rule 96A of the CGST Rules. Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero rated supplies. A detailed procedure for filing of LUT has been specified vide Circular No. 8/8/2017-GST dated 4.10.2017. It has been brought to the notice of the Board that in some cases, such zero-rated supplies were made before filing the LUT and refund claims for unutilized input tax credit got filed. In this regard, it is emphasized that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. 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.

[Ganeshan Kalyani]

Thanks Sri Kasturi for clearing the query. It is a big task to keep track of the notification / circular and recalling them at the right time. Really appreciated Sir.

[Deepak D]

Thanks, for your quick response sir

Officer is denying the GST Refund saying that the delay in filing LUT can be condoned and but the GST refund cannot be issued if LUT itself is not filed. Circular 125 also says the delay in filing LUT. Request you to help on the same

[KASTURI SETHI]

In case LUT is filed late, the department is bound by the circular to condone delay and sanction refund on account of goods and services exported. Both (You and the officer) agree and we can say that it is undisputed.

Secondly, the quantum of delay is not mentioned anywhere in the circular.

Thirdly, LUT safeguards revenue and nothing else.Hopefully, goods in question have been exported and you have received the export proceeds. Hence no loss of revenue is caused.The purpose of LUT is fulfilled without filing LUT.

Fourthly, it is a procedural lapse and nothing more than that. Maximum the department can impose penalty but refund cannot be denied.

If the Common Portal system does not allow filing LUT now, you can file offline.Thus legal requirement would be fulfilled though belatedly.

Regarding exports Govt. is very liberal if the goods have been actually exported and export proceeds actually received.

You must fight legally up to the end.i.e. unless and until you get justice.

[Ganeshan Kalyani]

I agree with the view of Sri Kasturi Sir.

[Shilpi Jain]

A very exhaustive reply Kasturi sir.

AI Summary

GST Refund Denied for Rice Mill Machinery Exporter Due to Late LUT Filing; Procedural Lapses in Focus A manufacturer of rice mill machinery exported machines without paying tax during the financial year 2020-21 but failed to file the Letter of Undertaking (LUT) due to oversight. As a result, the GST officer denied their refund claim for unutilized input tax credit. Respondents in the discussion highlighted that procedural lapses, such as delayed LUT filing, should not result in refund denial if the goods were indeed exported and proceeds received. It was suggested that the manufacturer could file the LUT offline and pursue the matter legally, as the government's approach to exports is generally lenient.