Export under LUT and payment in foreign currency

[Kaustubh Karandikar]

In case of export of goods under LUT without payment of GST, is there a pre – condition of receipt of payment in foreign currency? If yes under which provisions?

AI Summary

No Foreign Currency Requirement for Goods Export Under LUT Without GST Payment, Per IGST Act Section 2(6) A query was raised regarding whether there is a pre-condition to receive payment in foreign currency for exporting goods under a Letter of Undertaking (LUT) without GST payment. One response stated that there is no such requirement under GST law for goods export, though compliance with FEMA/RBI regulations is necessary. Another response clarified that, per Section 2(6) of the IGST Act, 2017, the foreign exchange requirement applies only to service exports, not goods exports. Both responses emphasized these views are personal and not professional advice.