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Is it possible to claim ITC Refund and IGST Refund in the same tax period

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Kalyan Bhattacharjya

25 Points Posted on 27 June 2024

Hi All

Can I export some shipments under LUT as well as some shipments on payment of IGST in a same tax period (FY 2024-2025), and claim refund claims of ITC as well as IGST respectively of export shipments. I have a accumulated ITC balance in my account and have LUT for the current FY. Can I still issue export invoices with IGST collected which can be paid from my ledger balance and later claim refund of that IGST in monthly filing? This would reduce my positive ITC balance and it would get credited to my bank account within 60 days. But I have LUT for this current FY.

Replies (5)

Quick Summary

This discussion explores whether an exporter can claim both an Input Tax Credit (ITC) refund and an IGST refund in the same tax period. While there was initial confusion, clarification suggests it is possible to raise export invoices with IGST paid from the credit ledger and claim the refund, even if the exporter has obtained a Letter of Undertaking (LUT) for the financial year. This approach can help reduce accumulated ITC balances and result in a bank credit within approximately 60 days, provided eligibility criteria for both types of refunds are met.

manoj kacha

95 Points Posted on 27 June 2024

As per my experience no, but u can withdraw ur accumulated ITC,

Kalyan Bhattacharjya

25 Points Posted on 28 June 2024

Ok. Thanks for your reply. On this topic it seems there is less clarity. 2 of the CAs I spoke to said its possible and 2 of the CAs said not possible. Not sure of the actual thing.

NITIN BORKAR

22 Points Posted on 30 June 2024

Does this imply that if a tax payer obtained LUT, he is not eligible to receive a refund of the IGST paid on export or on exports made with payment made using ITC from credit ledger?

Kalyan Bhattacharjya

25 Points Posted on 30 June 2024

Hi Nitin. I got a clarification from one of the experienced CAs (on export and import). Having LUT for a particular financial year, doesn't bar an exporter from raising IGST (from credit ledger) paid export invoice and thereby claiming the IGST refund. So its possible.