Wanted to know if their any other option to get the gst amount after exports other than updating LUT BOND every year

[Paul James]

Sir, can I know if their any other option to get the gst benefits of exports other than LUT BOND .

Because I hear some exporters are getting the gst paid without lut bond. To convince the gst people here sometimes is very difficult. So is their any other exports to claim it. I heard some exporters paying the tax in export invoices and claiming it easily by uploading it in the gst portal. 

 

Please advise 

[Sadanand Bulbule]

Alternatively, you may export on payment of IGST and then claim refund under Section 16 of the IGST Act, 2017. In this situation, there is no need of furnishing/renewiing LUT Bond every year. 

 Also refer Notification No. 05/2023 – Integrated Tax, dated  26th October, 2023

 

[Paul James]

Thank you very much sir. Its helpful. 

[Pinnacle Tax Advisor]

Absolutely, there is another option available. There are two ways to claim a refund of GST paid on inward supplies used for exports:

Option 1: Export without payment of tax by submitting a Letter of Undertaking (LUT). In this case, you can claim a refund of the accumulated Input Tax Credit (ITC).

Option 2: Export with payment of tax. The accumulated ITC can be used to pay the IGST liability on exports, and you can subsequently claim a refund of the IGST paid.

Under Option 2, you are also eligible to claim a refund of ITC on capital goods, which is not allowed under Option 1. Additionally, obtaining a refund under Option 2 is generally easier compared to Option 1.

[Paul James]

Thank you!! 

[Shilpi Jain]

Pls file RFD-11 on GST portal for LUT. Submission and getting the ARN generated is sufficient.

For past years file a letter with department along with manual RFD-11.

AI Summary

Exporters can claim GST benefits via LUT renewal or IGST payment with refunds under Section 16 IGST Act Exporters can claim GST benefits either by submitting and renewing a Letter of Undertaking (LUT) annually to export without paying IGST and then claiming a refund of accumulated Input Tax Credit (ITC), or by exporting with payment of IGST and subsequently claiming a refund under Section 16 of the IGST Act, 2017. The latter option does not require LUT renewal and allows claiming refunds on ITC for capital goods, which is not permitted under the LUT method. Filing form RFD-11 on the GST portal is necessary for LUT submissions, and for previous years, manual filing with the department along with a letter is required. Notification No. 05/2023 provides relevant guidelines. The option to pay IGST and claim refunds is often considered simpler and more flexible than renewing LUT annually.