Refund of IGST paid for non realization of export proceeds in case of Export of Service under LUT

Save Share

This query is : Resolved

Quick Summary

This discussion addresses how to claim a refund of IGST paid on exported services when payment wasn't received within the stipulated time, despite using a Letter of Undertaking (LUT). It clarifies that a refund of the IGST paid is possible under Rule 89 of the CGST Rules, provided the application is made within two years of receiving the payment. However, the refund of any interest paid on the delayed payment may not be claimable, although Section 54 of the Act might allow for interest refunds in certain circumstances.

DINESH RAGHAV

DINESH RAGHAV (Querist)
Follow

09 March 2023 We exported services without payment of Integrated Tax under Letter of Undertaking as per Section 16 of Integrated Goods and Service Tax Act, 2017 read with Rule 96A & 96B of Central Goods and Service Tax Rules, 2017.

But we could not receive the payment within one year from the date of issue of the invoice for export of services, according to GST provisions related to exports and we have paid the tax i.e IGST along with interest.

Now we received the payment. Please do let us know, how can we claim refund of IGST paid along with Act, Rules and provisions.

Regards
Dinesh

Udaya Chandran

Udaya Chandran (Expert)
Follow

09 March 2023 You can claim refund if the period is within 2 years from the relevant date, i.e. the date of receipt of amount for the services.

Message likes : 1 times

DINESH RAGHAV

DINESH RAGHAV (Querist)
Follow

10 March 2023 Can you please quote the Rule under which I can file refund of IGST paid?

Udaya Chandran

Udaya Chandran (Expert)
Follow

10 March 2023 Please refer to the Rule 89 of CGST Rules.

DINESH RAGHAV

DINESH RAGHAV (Querist)
Follow

10 March 2023 It is for refund of Duty paid on export of services. Whereas we have paid duty along with interest due to non realization of export proceeds for export of services under LUT.

Udaya Chandran

Udaya Chandran (Expert)
Follow

10 March 2023 You can apply for refund of IGST paid due to non realisation of export proceeds within the limit. However, you may not be able to get refund of the interest paid.

Guest

Guest (Expert)

12 March 2023 You can apply for refund of interest as section 54 allows for refund of interest as well.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!