LUT incase of GST on export services

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This query is : Resolved

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A client exporting services exceeded the £20 lakh turnover threshold in FY 2021-22 but faced delays in GST registration, preventing LUT application. While no action can be taken for FY 2021-22 regarding LUT, if GST registration is backdated to March 2022, revised invoices can be issued, and GST paid on exports can be claimed as a refund. For the current financial year (FY 2022-23), apply for LUT once GST registration is approved.

DIVYESH JAIN

DIVYESH JAIN (Querist)

29 March 2022 Dear Sir,

One of my client is into export services and his turnover exceeded 20 lacs in current financial year. He applied for gst registration in March 2022 but the application may get approved in April 2022 which becomes next Financial year.

My client will get GST registration certificate in next Financial year and he will be able to apply for LUT for exempting GST only in FY 2022-23.

What can be done for FY 2021-22 as his income from export of services is above Rs. 20 lacs but he was not able to submit LUT as registration was not given by department.

Please help me in this matter.

Regards,
Divyesh Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 March 2022 Nothing can be done for FY 2021-22. Threshold of 20 lacs not applicable for export. Before export GST registration is required.

CA Puja Sharma

CA Puja Sharma (Expert)

30 March 2022 You cannot apply for LUT for FY 2021-22. Ensure that you issue a revised invoice with GST after the GST registration is approved in April 2022.
Where the application has been voluntarily made by the taxpayer then the effective date of registration shall be the date on which the application was filed by teh assessee. So you might get GST registration dated March 2022.
After the registration is approved in March 2022 then you can apply for a refund of GST paid on the export of services.

CA Altamush Zafar

CA Altamush Zafar (Expert)

31 March 2022 You don't need to do anything for 2021-22. After receiving registration certificate apply for LUT. Keep FIRC of all transactions.
@CA R Seetharaman - Threshold limit applicable on export of services..

DIVYESH JAIN

DIVYESH JAIN (Querist)

01 April 2022 Thanks a lot for your reply

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