EXPORT OF GOODS - OPTING BOTH LUT AND IGST PAYMENT SIMULTANEOUSLY

[Raghunandhaanan rvi]

Dear Sir, 

An exporter opts to export goods under LUT without paying IGST. The LUT was registered and accepted by the GST office and is valid for 12 months.

This means the exporter can export goods under LUT until the validity period expires. During the LUTs validity period, he wishes to export a few consignments with IGST paid.

My questions are:

1. Can exports be routed under IGST while LUT remains valid under GST? I understand that both options cannot be used at the same time. Is this legally permissible?

2. If both options are available for an exporter to use simultaneously, then why is a LUT prescribed with a validity of 12 months?

3. Are there circulars or notifications clarifying these points?

Request your expert views and opinions in this regard.

AI Summary

Exporter with valid LUT can choose IGST payment for specific consignments and claim refund later An exporter holding a valid Letter of Undertaking (LUT) may still elect to export specific consignments by paying IGST and later claim refund; the LUT permits duty-free export but does not compel its exclusive use. The 12-month LUT validity is an administrative periodicity for review/renewal and does not bar choosing the IGST route during that term. Relevant GST circulars and notifications provide procedural clarity on refunds and LUT usage, and exporters may determine route shipment-by-shipment based on commercial and tax considerations.