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.

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.