Export without Payment - LUT

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This discussion clarifies the process for businesses exporting goods without paying GST by using a Letter of Undertaking (LUT). The key question is whether Input Tax Credit (ITC) on purchased goods can be claimed as usual when exporting under LUT. The consensus is that ITC on purchases can be claimed, and no separate refund claim for this ITC is necessary, as it will either be utilised against GST payable or carried forward to future returns.

Siddharth Kishan Mane

Siddharth Kishan Mane (Querist)

15 October 2022 My client is exporting goods to foreign country. I will be exporting without payment of GST thru LUT.
I have gone thru so many articles, columns, post on Exports still i m confused because of ambiguity and hectic rules of Exports.
I want clarity in this matter that -- I can claim the ITC on purchases of such goods as per regular course, Right? I wont have to claim for Refund of ITC on Purchase of such goods, correct?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 October 2022 Claim ITC on purchase of goods and claim refund of such ITC on exports.

Siddharth Kishan Mane

Siddharth Kishan Mane (Querist)

19 October 2022 When I claim ITC on purchase of Goods then Y should I again claim Refund ???
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 October 2022 Refund may be claimed on such ITC unutilised.

Siddharth Kishan Mane

Siddharth Kishan Mane (Querist)

19 October 2022 We are regularly filling gst returns therefore the ITC will be utilized against GST payable so there wont be any balance remaining of ITC. Even if there is any unutilised ITC it will be adjusted in the next month's return as general practice as per normal course, Regards

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