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LUT applicability

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DIPESH SHARMA

129 Points Posted on 22 July 2020

export k case m but goods exempted hai to kya LUT filed karana hoga kya plz... suggest...

Replies (2)

Quick Summary

This discussion clarifies the requirement of a Letter of Undertaking (LUT) or bond for zero-rated supplies under the IGST Act. It explains that if you are making a zero-rated supply of exempted goods, you are generally not required to furnish a bond or LUT. This is supported by specific sections of the IGST Act and relevant circulars, allowing for refunds without this requirement.

CA Raj Doshi

Practising CA

5649 Points Posted on 23 July 2020

As per section 16(3) of the IGST Act, a registered person making zero rated supply shall be eligible to claim refund when he either makes supply of goods or services or both under bond or letter of undertaking (LUT) or makes such supply on payment of integrated tax. However, in case of zero rated supply of exempted goods, the requirement for furnishing a bond or LUT is not required.

It is also categorically stated that the requirement of Bond/LUT cannot be insisted upon in such cases. (Circular No 45/2018 dated 30.05.2018). F. No. CBEC/20/16/4/2018-GST

Regards
CA Raj Doshi

Vijayprakash P

776 Points Posted on 23 July 2020

The registered person making zero rated supply via the CGST Act (Amendment )2018u/s 54(8)(a) can claim refund under either of two options-(a) Supply goods under bond or LUT without payment of IGST and claim refund of unutilized tax credit or (b) Supply goods on payment of IGST and claim refund of IGST paid on goods and services.