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Refund of ITC on capital goods in case of export of services under cover of LUT - Goods and Services Tax - GSTExtract Dear experts One company is in business of export of services (no domestic supplies). initially it exported services on payment of IGST. It utilised ITC at the time of payment of IGST on export of services. Later it applied for LUT and after that all supplies were done under LUT without payment of IGST. Since then it has huge balance of ITC in its credit ledger. ITC includes ITC on Inputs, Input services and capital goods (approx 40 lacs). As per Rule 89 , the company can claim refund of ITC on Inputs and input services only and the accumulated balance of ITC on capital goods will remain as it is. Please suggest what action can be suggested to company to save it from loss of ITC on capital goods. Please reply. Regards
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