Ayush Sharma asked 3 years ago
LUT is required or not in case of export of IT services?
My client is exporting services of IT to a California Company and we have GST No. I want to know do we have to apply for LUT or not
Answer the question
Manan Jain answered 3 years ago
It is not necessary for the client to file for LUT if they are exporting goods or services. They can supply goods or services on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied (For the purpose of payment of GST on goods/services exported, exporters may utilize corresponding ITC claims). If the client goes for LUT, Then person may supply goods or services under bond or LUT without payment of integrated tax and can claim refund of unutilized input tax credit.
For your convenience, you can refer section 16 of the Integrated Goods and Service Tax Act, 2017 (“IGST Act”)
Manan Jain answered 3 years ago
It is not necessary for the client to file for LUT if they are exporting goods or services. They can supply goods or services on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied (For the purpose of payment of GST on goods/services exported, exporters may utilize corresponding ITC claims). If the client goes for LUT, Then person may supply goods or services under bond or LUT without payment of integrated tax and can claim refund of unutilized input tax credit.
For your convenience, you can refer section 16 of the Integrated Goods and Service Tax Act, 2017 (“IGST Act”)
