Procedures of Export under LUT & Refund of IGST in GST Regime

The Goods and Services Tax (GST) has revolutionized the way businesses operate in India. The GST regime has streamlined the taxation system by integrating all the indirect taxes into one regime, thereby improving the efficiency of the taxation process. This has made it easier for businesses to export their products from India to other countries.

Procedures of Export under LUT

Under the GST regime, businesses can export their products without the payment of Integrated Goods and Services Tax (IGST) by furnishing a Letter of Undertaking (LUT) in place of a bond. An LUT is a formal declaration made by the exporter that they will fulfill all the obligations laid down under the GST laws. The following are the procedures of export under LUT:

1. The exporter must be registered under the GST regime and must have a valid GSTIN (Goods and Services Tax Identification Number).

2. The exporter must file an application for the issuance of an LUT in FORM GST RFD-11 on the GST portal.

3. The application for the LUT must be filed manually or electronically with the jurisdictional Commissioner of Central Tax or Commissioner of State Tax.

4. The jurisdictional officer will verify the details provided in the application and issue the LUT within three working days from the date of submission of the application.

5. The LUT will be valid for the whole financial year in which it is submitted.

6. The exporter must file the LUT in duplicate with the concerned authorities at the port of export along with the shipping bill or bill of export.

7. The exporter must ensure that the details mentioned in the LUT are correct and complete.

Refund of IGST in GST Regime

Under the GST regime, businesses can claim a refund of the IGST paid on the export of goods or services. The following are the procedures for claiming the refund of IGST:

1. The exporter must file an application for the refund of IGST on the GST portal in FORM GST RFD-01.

2. The application for the refund of IGST must be filed within two years from the date of export of goods.

3. The exporter must ensure that all the details mentioned in the application are correct and complete.

4. The application for the refund of IGST must be accompanied by the following documents:

A copy of the invoice
A copy of the shipping bill or bill of export
A copy of the LUT or bond
A certificate from the authorized officer of the supplier of goods or services that the input tax credit has not been availed of by them

5. The application for the refund of IGST will be processed by the concerned authorities and the refund will be credited to the exporter's bank account within a period of 60 days from the date of receipt of the application.

Conclusion

Exporters can benefit from the simplified procedures of export under LUT and can claim a refund of the IGST paid on the export of goods or services. However, it is important for the exporters to ensure that all the details mentioned in the LUT and the application for the refund of IGST are correct and complete. This will help in avoiding any delays in the processing of the application for the refund of IGST and will also help in avoiding any penalties that may be imposed for incorrect or incomplete information.