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

[Shrivalli]

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.

[KASTURI SETHI]

Q. 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 ?

Ans. Since services have been actually exported and export proceeds hopefully would be received in full (as stated by you), thus it would zero rated supply. Apply for condonation of the delay in filing LUT.

Q. 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 ?

Ans. NO. Not at all. It being genuine transaction. Services exported actually.

Q. 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?

Ans. No need to pay IGST. Delayed LUT would be accepted as per Circular. Export would be regularised.

Q. 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 ?

Ans. NO.

Q. Has anyone dealt with a similar situation, and if so, what was the approach taken by the GST department ?

Ans. I have not dealt with such case. In view of genuine transaction and actual export, it is my experience in the department that Govt.'s approach is liberal because export is always in the interest of nation.

[Sadanand Bulbule]

While endorsing the reply of Sri Sethi Sir, my expressions are as under:

You can safely treat your April to July exports as zero-rated under LUT in your pending returns without paying IGST, as the delay in filing the LUT is a condonable procedural lapse. Under CBIC Circular No.125/44/2019 GST dated 18/11/2019, substantive export benefits cannot be denied over timing technicalities, provided your exports are genuine and foreign remittances arrive within FEMA timelines.

Simply report all invoices in Table 6A of GSTR-1 and Table 3.1(b) of GSTR-3B using your July LUT ARN, pay the automated late-filing fees, and submit a brief representation letter incorporating the clarification issued via above Circular to your jurisdictional tax officer alongside your FIRCs/BRCs to ensure smooth ITC refund processing and audit protection.

[Raam Srinivasan Swaminathan Kalpathi]

Dear Querist

Non upload of LUT before export of services is a procedural lapse which is condonable. In the event of a Notice or audit or scrutiny please point out para 44 of Master Circular 125 (as amended by Circular 135 and Circular 139) provides enough evidentiary material on this for representation to the department.

In your case the substantial benefits of export of services cannot be denied by the department for a procedural lapse.

[KASTURI SETHI]

Non-Filing of LUT Is a Curable Defect for Export Services: Karnataka HC in the case of NUVTEQ Solutions Private Limited Vs Joint Commissioner of Commercial Taxes (Karnataka High Court) - 2026 (7) TMI 62 - KARNATAKA HIGH COURT

[KASTURI SETHI]

Also see the following judgement :

2025 (12) TMI 1365 - KARNATAKA HIGH COURT

[Shrivalli]

Thank you Sir for your prompt reply and for taking the time to answer my queries regarding the delay in applying for the LUT. I appreciate your clarification and assistance. Your support has been very helpful.

Thank you once again.

[Shilpi Jain]

Delayed LUT is no issue. Should not lead to any IGST liability. It is condonable provided your exports are genuine.

AI Summary

Delayed LUT compliance for genuine service exports may be regularised, preserving zero-rated treatment subject to supporting export and remittance records.
Delayed LUT filing for genuine export of services is presented as a condonable procedural lapse where export proceeds comply with applicable FEMA/RBI requirements. Pending GSTR-1 and GSTR-3B returns may report the invoices as zero-rated supplies without IGST payment, subject to acceptance or regularisation of the delayed LUT. Export and remittance records, including foreign inward remittance or bank realisation evidence, should be retained for refund processing, assessment, audit, or scrutiny.