said in cases where there is no output liability against which a credit note can be adjusted, supplier of goods can file a refund claim through Form GST
The CBIC clarification comes at a time when sectors like aviation and hospitality are grappling with mass cancellation of bookings in view of the lockdown
due to the pandemic.
"This clarification would help worst-hit sectors of the business fraternity to claim a tax refund from the government, which would also have a ripple effect in the entire supply chain", PTI quoted Rajat Mohan, Senior Partner at AMRG & Associates as saying. Further, the CBIC has also clarified that exporters can now file letters of undertaking (LUT) till June 30 for full fiscal 2020-21, as against the earlier requirement of filing it by March end.
Under Goods and Services Tax (GST), exporters are allowed to ship consignments overseas by just furnishing LUT, without paying integrated tax (iGST).