LUT UNDER GST

File Letter of Undertaking (LUT) in GST

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Letter of undertaking is the document that the user provides declaring fulfillment of all requirements under GST. It is furnished in case of export undertaken without paying IGST. Also, according to the Notification No. 37 /2017 – Central Tax It is mandatory to furnish LUT to export goods or services or both without paying IGST. If the exporter fails to provide the LUT, then he has to pay IGST or provide an export bond. Earlier LUT could only be filed offline at the concerned GST office. But to further ease the process the Government has made the LUT filing online.

What are the eligibility criteria to apply for LUT?

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A person intending to supply goods/services

To or outside India or

Places covered under Special Economic Zone

Without paying integrated tax and

Is also registered under goods and services tax

An individual is eligible to apply for LUT if the below-mentioned conditions are fulfilled.

There has never been the prosecution of the person under the Central Goods and Services Tax Act (CGST) or the Integrated Goods and Services Act (IGST) 2017 or any other existing laws. Where, the amount of tax levied exceeds Rs. 250 lakhs.

The LUT shall be provided on the letterhead of the person registered under goods and services tax. It should be furnished in duplicate for a financial year. LUT is presented in the annexure to form GST RFD-11 and can be issued by the partner, MD, Company Secretary or by the person duly signed by the company or the proprietor.

If a person fails to pay the tax within the stipulated time as mentioned under the Central Goods and Services Act, the facility of exporting without payment of IGST is withdrawn till it is paid.

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The jurisdiction for the submission of LUT

The LUT shall be accepted by the Assistant or Deputy Commissioner having Jurisdiction over the place where the exporter does his business. The Exporter can furnish the LUT before any central or state officer till any specific administrative officer is assigned.

Documents required for LUT filing

Entity’s PAN Card A Copy of PAN card of the exporter entity

KYC of Authorised Signatory A Copy of PAN card and Aadhar card of partners/directors

Witnesses Information of at least two witnesses along with the address proof and PAN

GST Registration GST Registration Certificate of the exporter is required

IEC Certificate The IEC certificate must be submitted

Cancelled cheque A Copy of cancelled cheque of current account of exporter

Advantages of Bond/LUT Filing

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No tax on exports

Save working capital

No headache of monthly payment

No headache of claiming refund

Process of filing LUT under GST

Day 1 - 2

1. Collection
2. Discussion and collection of basic Information
3. Collection of required documents

Day 3 - 4

1. Execution
2. Preparation for the Letter of Undertaking
3. Online Submission of LUT

Day 5

1. Acknowledgement
2. Sharing Acknowledgment bearing ARN