Executed software exports without GST LUT

[Khozaima Patel]

I am a proprietership firm which is registered with GST.

In the FY 2024-25 I have executed software exports. I do not have a GST LUT (Letter of Undertaking).

Someone informed me that as a result of the above, I should pay the GST amount for the above exports and then ask for a refund after submitting proof of export (FIRC, etc).

Is this correct? Do I need to do this? Or should I just apply for GST LUT for the current FY (2025-26)?

AI Summary

Zero-rated exports: absent LUT requires payment of IGST and subsequent refund claim after proof of export.
Software exports qualify as zero-rated supplies if an exporter furnishes a Letter of Undertaking (LUT) in FORM GST RFD-11 for the applicable financial year. If no LUT was furnished for the year of export, the exporter is required to pay IGST on the export invoices and then claim a refund upon submission of proof of export; alternatively, the exporter may seek condonation of delay in furnishing LUT where documentary evidence proves genuine export.