GST on export of services and Input Credit

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This query is : Resolved

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If you're exporting services and have been paying GST, you can now file a Letter of Undertaking (LUT) to make export invoices without paying GST. You can also claim input tax credits on your domestic purchases. Furthermore, you can file for a refund of GST paid on exports over the last two years, provided you haven't passed on the tax burden to your client and can provide the necessary documentation.

Pooja

Pooja (Querist)
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19 November 2024 Dear Sir

I am into the export of Services and I am paying GST for the last two years on that. Now can I file LUT and make the export Invoice without payment of GST. Also plz confirm if I can claim input credit on all the purchase I am doing in India and also if I can file the refund for the GST I am paying for the last two years.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 November 2024 Yes, you can file LUT now and export without payment of GST and claim refund of input credit.
Yes you can claim refund for last 2 years.
A person claiming refund is required to file an application before the expiry of two years from the “relevant date".

Pooja

Pooja (Querist)
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19 November 2024 I have collected from the client and deposited the GST then also I can claim refund of that.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 November 2024 No you can't claim refund in such a case.
To claim a tax refund, an applicant must provide prescribed documentary evidence to prove that they are eligible for the refund. They must also provide evidence that the incidence of tax or interest paid by them in relation to such refund has not been not passed on to another person

Pooja

Pooja (Querist)
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21 November 2024 If I am giving only export services then also I can claim the whole amount of Input Credit on the expenses incurred.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 November 2024 Yes, it's related to the service provided.

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