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Non Realization of Export Invoice Amount(Services)

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Kartheek Velamala

133 Points Posted on 30 December 2021

Dear Sir/Mam

We have a service Invoice export with LUT in the month of Jun'21 due to some issues our client can pay that amount in March'22.. here amount will be realsed after 9 months.. do we need to pay any RCM IGST due to non realization of amount.

if yes if we pay can we get refund later we recieve the payment.

Replies (2)

Quick Summary

This discussion addresses whether RCM IGST needs to be paid when payment for export services made under LUT is delayed by nine months. The consensus is that if a valid LUT for the financial year was in place, no IGST is payable, regardless of the payment realisation date. The possibility of claiming a refund if IGST is paid inadvertently is also touched upon.

Kesavaraj S

333 Points Posted on 01 January 2022

If you have LUT for FY 2021-22 there is no need to pay IGST irrrspective of date of realisation of sale consideration because LUT is valid for whole Financial year till Mar'22