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

Export GST refund options: use LUT for zero-rated exports or pay IGST and claim refund under IGST provisions. Exporters may either export under a Letter of Undertaking (LUT) to treat supplies as zero-rated and claim refund of accumulated Input Tax Credit, or export on payment of IGST and claim refund of the IGST paid without needing an LUT. The payment-and-refund route allows claiming ITC on capital goods and is often administratively easier. Procedurally, RFD-11 is filed on the GST portal for LUT refunds (ARN confirmation suffices) and manual RFD-11 plus a departmental letter can be used for past years.