Quick reference to tax compliance and reliefs provided under The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 and Notifications issued after 20.3.2020 {Part 9}-Goods and Services Tax Laws, LUT for Exporters / Zero rated outward supplies under GST

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Relevant Subject / Section : test Date of the Article :
  • Notification No. 37/2017-Central Tax, dated 4.10.2017, requires furnishing of Letter of Undertaking (LUT) for a financial year in place of a Bond who intends to supply goods or services for export without payment of integrated tax subject to conditions mentioned therein
  • Letter of Undertaking (LUT) furnished for the purposes of zero-rated supplies as per provisions of section 16 of the IGST Act, 2017 r.w. with rule 96A of the CGST Rules has expired on 31.03.2020.

Question

  • Whether a registered person can still make a zero-rated supply on such LUT and claim refund accordingly or does he have to make such supplies on payment of IGST and claim refund of such IGST ?

Answer

  • In terms of Notification No. 35/2020 Central Tax dated 3.4.2020, where the requirement under the GST Law for furnishing of any report, document, return, statement or such other record falls during between the period from 20.03.2020 to 29.06.2020, has been extended till 30.06.2020.
  • In this regards the Central Board of Indirect Taxes and Customs has, vide Circular No. 137/2020 dated 13.4.2020 has clarified as follows:

“Therefore, in terms of Notification No. 35/2020-Central Tax, time limit for filing of LUT for the year 2020-21 shall stand extended to 30.06.2020 and the taxpayer can continue to make the supply without payment of tax under LUT provided that the FORM GST RFD-11 for 2020-21 is furnished on or before 30.06.2020. Taxpayers may quote the reference no of the LUT for the year 2019-20 in the relevant documents.”

  • Accordingly, for the financial year 2020-21, Form GST RFD-11 is to be furnished on or before 30.6.2020.
  • Up to 30.6.2020 the taxpayer may quote the reference No. of the LUT of 2019-20 in the relevant documents.