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TMI BlogExport of Services under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Export of Services under GST X X X X Extracts X X X X X X X X Extracts X X X X ..... 4-25. Client is registered taxpayer in GST and have filed nil return till Feb-25. Payment has directly been received in INR in his bank account. Billing is done in USD to clients. What happen is that client have not filed any LUT for FY 2024-25 for availment of benefit of export of services without payment of tax as he is not aware for any of such compliance. My question is that what treatment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be done in respect of payment received during the year FY 2024-25 (till March-25) and should we pay GST on such export considering the same as export made with payment of tax @ 18% on total payment received during the year and its treatment in March-25 GSTR-1 & GSTR-3B ? Reply By Ganeshan Kalyani: The Reply: Did you receive any notice from GST department ? Reply By AKSHAT AGARWAL: The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply: Sir, We have not received any notice yet. But I am looking for correction in March-25 return in order to avoid any future litigation in the matter. Thanks Reply By RaamSrinivasan Kalpathi: The Reply: Please file for LUT relating to financial year 2024-25 now. Non-filing of LUT is only a technical mistake and GST authorities cannot insist on remittance of GST. You may take comf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort from para no. 44 of GST refund master Circular 125 issued in 2019 which clearly delineates that non-filing of LUT is only a procedural lapse. Reply By AKSHAT AGARWAL: The Reply: Option to file Lut for fy 24 25 is not available on portal now. Reply By RaamSrinivasan Kalpathi: The Reply: Please meet the jurisdictional Suptt. and explain the issue and file LUT in Form RFD-11 in manual form.&n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; You can always explain a technical lapse. Reply By KASTURI SETHI: The Reply: No IGST is required to be paid. You have not caused any revenue loss. You can file LUT manually. Reply By AKSHAT AGARWAL: The Reply: Sir another question is striking whether it is export of service or not as payment is crediting in client account directly in INR. One of condition under sec 2(6) is payment i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s received in CFE however can be received in INR wherever permitted by RBI. What impact does it carries ? Reply By RaamSrinivasan Kalpathi: The Reply: Please read the highlighted portion. You may take a certificate from your banker also. Also see master Circular 125 of 2019 which explains the procedural aspects for export of services under LUT (6) "export of services" means the supply of any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice when,-- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange 1[or in Indian rupees wherever permitted by the Reserve Bank of India]; and (v) the supplier of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8; Reply By KASTURI SETHI: The Reply: Dear Querist, Do not be a victim of phobia of the department. You have got fool-proof and detailed and correct reply from Sh. Kalpathi, Sir. Reply By vijay kumar: The Reply: 1. Not filing LUT is only a technical / procedural lap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. No need to pay GST in my view. 2. If payment is received in INR as per RBI guidelines/permission, then there is no issue. If not, it cannot be treated as export of service as per Sn.2(6) of IGST Act'17. Reply By AKSHAT AGARWAL: The Reply: I would like to thank every experts for their valuable guidance and prompt replies. Reply By Shilpi Jain: The Reply: Chk the source of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he INR that is credited to your account. If its come from a foreign currency account of the customer, then it is as good as foreign currency received. Chk with your bank to provide you FIRC which is the proof of receipt of foreign exchange. LUT apply on portal or manually. Reply By AKSHAT AGARWAL: The Reply: Ok Ma'am noted. Reply By Sadanand Bulbule: The Reply: I welcome the united opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the experts. X X X X Extracts X X X X X X X X Extracts X X X X
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