Answer

1. F

   Facts

   Yes. If you export goods or services under a Letter of Undertaking without paying IGST, Sec 16(3)(a) of the IGST Act and Sec 54(3) of the CGST Act allow refund of the unutilised ITC. The claim is filed in RFD-01 on the GST portal.

2. P

   Provisions and law

   • Sec 16(3), IGST Act 2017Zero-rated supply can be made under LUT without IGST, with refund of unutilised ITC
   • Sec 54(3), CGST Act 2017Refund of unutilised ITC is allowed on zero-rated supplies without tax and on inverted duty
   • Rule 89, CGST Rules 2017Application for refund in RFD-01 with the prescribed statements
3. A

   Analysis

   An IT services exporter who pays 18 percent GST on software, rent and professional fees has no domestic output tax to use it against, so the credit piles up. Refund under Rule 89(4) turns that credit into cash. A business that exports only part of its sales gets a proportionate refund. Claims can be filed for one or more months, but within one financial year.

4. C

   Conclusion

   1. 1Confirm a valid LUT was in place for the export period
   2. 2Reconcile export invoices, GSTR-1, GSTR-3B and the credit ledger
   3. 3Compute the refundable amount by the Rule 89(4) formula
   4. 4File RFD-01 under the category for exports without payment of tax

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.