GST refund for export of services without payment of tax

[vishwanath shetty]

GST registration was taken in Nov 2022. and 1st export of service was made in April 2023. but there is accumulated ITC for period Nov 22 to March 23. how can I claim that. also there is no LUT for FY 2022-23

[Raam Srinivasan Swaminathan Kalpathi]

You should have filed application for refund of accumulated ITC in RFD-01 in April or May 2023 for the period from Nov 2022 to April 2023.  There is no financial year concept in refund application.  Would suggest you remit tax against the next export of service, set-off the accumulated ITC and then file refund claim of GST on export of services upon payment of tax with the department.  This will exhaust the accumulated ITC.  One can always move to LUT after this.  Thanks

[KASTURI SETHI]

There was no need of LUT for the year 22-23 when service was exported for the first time in April, 23. Non-filing of LUT for 22-23 was not a bottleneck in getting refund claim for the period from Nov. 22 to March, 23.

There is no time limit in utilizing ITC. From now onwards service should be exported on payment of IGST from Electronic Credit Ledger Account and, thereafter, apply for refund/rebate claim.

LUT is required only if you export without payment of tax. The ultimate purpose of LUT is to safeguard revenue.

[Shilpi Jain]

If you do not have any domestic supplies where u can use this credit, adopt export with payment of IGST, utilise your credit to pay off this and then apply for refund.

Exports made in FY 23-24 - no LUT required before that .

AI Summary

Export of services with IGST payment permits utilisation of accumulated ITC and subsequent refund claim. Taxpayers with accumulated ITC prior to their first export may export with payment of IGST, utilise accumulated credit from the Electronic Credit Ledger to discharge the IGST liability, and thereafter file a refund application (RFD 01) for unutilised ITC; an LUT is necessary only for exports without paying tax, and non filing of an LUT for the prior year is not a bar to refund claims.