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

Guidance on GST Refund for Export Services: File RFD-01 for ITC Refund, No LUT Needed for FY 2022-23. A query was raised regarding the GST refund for the export of services without payment of tax, specifically concerning accumulated Input Tax Credit (ITC) from November 2022 to March 2023. Respondents advised filing a refund application for accumulated ITC using RFD-01, suggesting that tax should be remitted against the next export, utilizing accumulated ITC, and then applying for a refund. It was clarified that a Letter of Undertaking (LUT) was not required for exports in FY 2022-23, and ITC can be used without a time limit. Exporters are advised to export with payment of IGST to utilize the credit effectively.