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LUT applicability

DIPESH SHARMA (132 Points)

22 July 2020

export k case m but goods exempted hai to kya LUT filed karana hoga kya plz... suggest...

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CA Raj Doshi (Practising CA) (8910 Points)
Replied 23 July 2020

As per section 16(3) of the IGST Act, a registered person making zero rated supply shall be eligible to claim refund when he either makes supply of goods or services or both under bond or letter of undertaking (LUT) or makes such supply on payment of integrated tax. However, in case of zero rated supply of exempted goods, the requirement for furnishing a bond or LUT is not required.

It is also categorically stated that the requirement of Bond/LUT cannot be insisted upon in such cases. (Circular No 45/2018 dated 30.05.2018). F. No. CBEC/20/16/4/2018-GST

Regards
CA Raj Doshi

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Vijayprakash P (1313 Points)
Replied 23 July 2020

The registered person making zero rated supply via the CGST Act (Amendment )2018u/s 54(8)(a) can claim refund under either of two options-(a) Supply goods under bond or LUT without payment of IGST and claim refund of unutilized tax credit or (b) Supply goods on payment of IGST and claim refund of IGST paid on goods and services.