Ravikiran asked 4 years ago
Hi,
My annual turnover will exceed 20 lacs from software service exports to US. I will be registering with GST soon, but I don’t want to claim any refund as my input cost is very small. Since GST service exports are zero rated, do I need to undertake bond/LUT OR pay IGST on export supplies even if I don’t want to claim any refund on unutilized input tax credits?
Thanks.
Hemal Makwana answered 4 years ago
Obtaining LUT and claiming refund are two different things. LUT is required to undertake exports without payment of tax, whereas refund is claimed is respect of unutilised ITC.
Obtaining LUT is very simple process. In case you don’t opt LUT, you will be required to pay tax on exports.
Team FileMyGSTR Staff answered 4 years ago
Hi Ravikiran, Your query is precisely explained by Hemal. However adding small information further. You can let go your input credit, that’s optional. However obtaining LUT will help you in avoiding payment of GST and claiming a refund. You can get on a call with our in-house expert to clear your doubts further. You can write to us with your contact details at [email protected] and we will arrange a “no charge” expert call back. Hope this is helpful. Thanks!