GST refund

[THYAGARAJAN KALYANASUNDARAM]

Dear friends,

One of my client who exported the service for the fy 2020-21 and supply made without payment of GST. Further, they didn't apply the LUT. Now, Can we apply for refund of GST Input Tax Credit for the above year. Please suggest me.

Thanks in Advance.

[Amit Agrawal]

Para 44 of the Circular No. 125/44/2019-GST dated the 18th November, 2019:

"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."

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Thank you so much for your timely support.

AI Summary

Zero-rating for exports: ex post facto LUT condonation permits refund of unutilized input tax credit where exports are established.
Where exports of services were effected without furnishing a Letter of Undertaking, administrative guidance permits condonation of delay and ex post facto allowance of LUT; refunds of unutilized Input Tax Credit should not be denied solely for delayed LUT filing if it is established that exports complied with the relevant provisions, subject to facts, circumstances, and procedural verification.