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Suggestion Required : Export with or without LUT?

12 July 2021

Is it recommended to export with LUT or by paying IGST?

I will be exporting my product for the first time. This is manufactured using raw materials sourced from different vendors. If I pay GST to each vendor for the raw material, how do I claim this when I cannot charge GST to my overseas client?

Can I adjust the ITC against my domestic sales? How?

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3 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 12 July 2021

You will not charge GST from your overseas client.

Either you pay GST on exports or export it on LUT.

If you pay GST, the amount will be refunded.

If you export it under LUT then you can claim refund of ITC.

For further query you can mail me.

Kunal Vanjare (24 Points)
Replied 12 July 2021

Originally posted by : CA Altamush Zafar
	You will not charge GST from your overseas client. Either you pay GST on exports or export it on LUT. If you pay GST, the amount will be refunded. If you export it under LUT then you can claim refund of ITC. For further query you can mail me.

Yes, but what I am asking is that if I export under LUT, should I be asking my suppliers to bill me without charging me GST? Or do I still have to pay GST for purchases? And can I use this ITC for domestic sales?