A person making zero rated supply can claim of refund of GST of the IGST amount paid ,the shipping bill was treated as declaration of export in case of goods ,there was no restriction on input of capital goods in that case .

In second case the accumulated ITC can be claimed as refund without paying the output tax under a cover of bond or LUT, in this case there was restriction on input of capital goods .

Budget 2021 has brought an amendment in Section 16 of the IGST Act 2017 ,whereby the first option wherein IGST can be paid ,can be claimed as refund is no longer available now and the exporter has to compulsorily has to go for LUT mode (No payment mode) which will lead to no ITC on capital goods .

The exporters now is having no option but to go for second option where he can claim the accumulated ITC as refund only .

ITC on capital goods will not be available now which will significantly increase the costing for exporters and will hamper the cash flows as such .
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