Delayed LUT Application and Filing of Pending GST Returns for Export of Services

[Nirmala]

Dear Experts,

I would appreciate your guidance on the following GST matter concerning exports of services.

Background:

• I exported services continuously from April to July during the current financial year.
• At the time of making these exports, I had not yet applied for a Letter of Undertaking (LUT).
• I subsequently applied for the LUT in the month of July, approximately three months after the commencement of exports.
• I have also not filed my GST returns (GSTR-1 and GSTR-3B) from April onwards. I am now planning to file all the pending returns.

My queries are as follows:

1. Can I now file my pending GSTR-1 and GSTR-3B returns by treating the supplies made from April to July as zero-rated exports under the LUT?
2. Since the LUT was applied for only in July, will there be any legal or procedural complications for the exports made prior to the date of LUT application?
3. Is there any requirement to pay IGST on the exports made before the LUT was furnished, or can the delayed LUT be accepted for those exports?
4. Will the delayed filing of GST returns, along with the delayed LUT application, create any issues during future GST assessments or while claiming a refund of unutilised Input Tax Credit (ITC), if applicable?
5. Has anyone dealt with a similar situation, and if so, what was the approach taken by the GST department?

All export proceeds have been or will be received in accordance with the applicable FEMA/RBI requirements, and the exports are genuine. I would be grateful if experts could share the relevant legal provisions, CBIC circulars, or practical experience that may help in resolving this issue.

Thank you in advance for your guidance.

[KASTURI SETHI]

See Circular No.125/44/2019-GST dated 18.11.2019 as amended. Focus on para no.44.

[KASTURI SETHI]

Go through all circulars amending circular no.125/44/2019-GST dated 18.11 2019 word for word and, thereafter, post afresh query/queries.

[KASTURI SETHI]

Delay is condonable.

AI Summary

Delayed LUT for service exports raises zero-rated reporting, IGST payment, pending return filing, and input tax credit refund concerns. Delayed furnishing of an LUT for export of services raises whether exports made before its application can be reported as zero-rated supplies under the later LUT, or require payment of IGST. The matter also concerns filing pending GSTR-1 and GSTR-3B returns, and the possible effect of delayed LUT and return filing on GST assessment and refund of unutilised input tax credit. The exports are stated to be genuine, with export proceeds compliant with applicable FEMA/RBI requirements.