Q. 653 Where is LUT agreement specifications ?

Ans. The LUT form is prepared under rule 96A for export of goods or services.

Q. 652 Whether there is a need for Reversal of ITC as Rule 42 for the Duty Draw Backs received by Exporter . This is included as Exempt Income in the Books just like (d)) the value of supply of Duty Credit Scrips specified in the notification of the Government of India, and the Interest on Loans which is an Exempt Supply for Registered persons other than Banking Co. which are specifically allowed to be excluded from the Exempt Turnover purpose of Rule 42.

Ans. For scripts there is specific provision to exclude from exempted supply for the purpose of rule 42.

Q. 651 My client received 20% of the contract value on signing of the contract (and a tax invoice issued with GST) amount in Financial year 2021-22. However, the contract is being cancelled and my client has to return the 20% in February 2023, for which the other party is raising an invoice for cancellation of the signing amount with GST thereon. Query is whether GST is levied on Cancellation of the contract ? or we can raise a credit note to the party without GST. Please assist. Thank you

Ans. You can raise GST credit note.