LUT not applied but export of services made, Goods and Services Tax - GST

[Dilip Sanghvi]

What can be done now of the client has made export of services stating that he has LUT for Fy 19-20 and while applying for FY 20-21 he got to know that he did not apply for LUT in FY 19-20 and has made export supplies in FY 19-20.. He has received all the proceeds in time. Paying igst and taking refund is one option but it will cost interest. What could be the possible solution other than paying IGST and claiming refund.

Posts / Replies

[KASTURI SETHI]

Dear Mr.Yadav,

The question of recovery of GST does not arise. In this scenario, GST is not payable, especially, in view of the fact that export proceeds have been received.This is all happening due to lack knowledge. No need to reply such letter or query. Nothing to worry. It is a simply procedural lapse. The department is not sitting idle for such unproductive work. Pl. ensure that such mistake must not be repeated. If you receive any letter from the department regarding imposition of penalty on account of this procedural, post your query in this forum. I shall solve your problem.

[Yadav Gmv]

Dear kasturi sir, thanks so much sir. Really thank u.

Here the email is from my client who is a large IT company operating from SEZ.

My client has asked me to submit the lut sez acknowledgement. Now when i am checking to give we realise the LUT is there only for fy18-19 and fy20-21.

For fy19-20 , the LUT is NOT available. So dont know how to handle with this with my client. Kindly pl suggest sir.

[KASTURI SETHI]

Dear Querist,

See Circular No.37/11/2018-GST dated 15.3.18 as amended.

"4.1. In this regard, it is emphasised that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made."

Para no. 44 of Circular No.125/44/2019-GST dated 18.11.19

"In this regard, it is emphasized that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made."

[Yadav Gmv]

Thank you kasturi sir. This is great.