The Goods and Services Tax (GST) system in India offers exporters the facility to export goods or services without paying Integrated GST (IGST) by filing a Letter of Undertaking (LUT). The LUT allows the exporter to make zero-rated exports without the burden of paying IGST upfront and later claiming a refund. This mechanism not only […]
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What is an Inverted Duty Refund?
In the world of taxation and trade, the term “Inverted Duty Refund” has gained prominence, particularly under the Goods and Services Tax (GST) regime in India. It is a mechanism designed to correct the tax structure when input taxes are higher than output taxes, causing a tax accumulation. In simple terms, an inverted duty structure occurs when the […]