Export of Goods and ITC

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This discussion clarifies the rules around Input Tax Credit (ITC) for goods exporters. Generally, if you have obtained a Letter of Undertaking (LUT), no ITC reversal is required for exports, though you can claim a refund for any remaining ITC. Even when issuing invoices at a concessional rate for merchant exports, ITC reversal is not necessary, whether you have an LUT or not.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)

30 April 2022 While exporting of Goods , is it require any reversal on Input tax credit?

Iam trader and I have also an exporter of goods. For the purpose i have buy goods from my supplier and claim ITC on the same. While exporting these goods i have not paid any GST among that. Is there any issue in that. I have use these ITC for set off my taxable supply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 April 2022 You have to reverse ITC related to exports and claim refund.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)

01 May 2022 In case I have obtain LUT is there i require ITC reversal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 May 2022 No need of ITC reversal in such a case, claim ITC refund in case balance ITC left over.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)

02 May 2022 Ok. I have one more doubt , in case of merchant export i have issue invoice at a concessional rate of .1 % , in this case is there any reversal of ITC required
1. When I have obtain LUT
2. Not obtain LUT

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 May 2022 No reversal of ITC required in both the cases.

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