GST LUT Filing
The GST LUT Form is an important document that lets you export goods without having to pay Integrated Goods and Services Tax (IGST) at the time of sale. This blog will show you how to file the GST LUT Form faster and easier, making your export journey better than ever.
Understanding LUT in GST
You can find the Letter of Undertaking in its complete form here:
- The Letter of Undertaking is of considerable importance in the context of the Goods and Services Tax (GST) framework.
- This document is an effective tool for exporters, as it enables them to export products or services without needing immediate tax payment.
GST LUT Form for Exporters
It is mandatory for all registered taxpayers who are involved in the export of goods or services to submit a LUT using the Form GST RFD-11 form available on the GST portal. This obligation is critical to allowing exports to proceed without paying the IGST.
Eligibility Criteria for LUT Registration
The following are the eligibility criteria for obtaining a LUT certificate:
Any registered taxpayer who exports products and services is eligible to use the Letter of Undertaking (LUT). However, individuals under prosecution for tax evasion involving a value of Rs. 250 lakh or more are not eligible for this option.
- Intent to Supply: The applicant should have the intention of supplying products or services to Special Economic Zones (SEZs), foreign countries, or within India.
- GST Registration: The entity must register under the GST framework to receive a LUT
- Tax-Free Supply: The desire to supply products without the imposition of an integrated tax is a critical requirement for LUT applications.
Benefits of Filing LUT for Exporters
Exporters choose to file a LUT, which streamlines their export activities and improves their financial operations in many ways:
- Tax-Free Export: Exporters that choose the LUT certificate can proceed with their export activities without having to worry about paying taxes right away. Exporters who pay taxes, on the other hand, can get their zero-rated export refunds.
- Simple Process: The LUT certificate may help exporters avoid the complexities of tax refund claims and follow-ups with tax authorities. This results in significant operational efficiency and time savings.
- Unblocked Working Capital: Exporters can access funds that would have been otherwise restricted as tax payments. This is particularly important for small and medium-sized enterprises (SMEs) that are currently experiencing financial and working capital constraints.
- Liberated Resources: The LUT certificate consistently provides a competitive benefit for regular exporters. Once submitted, the LUT remains valid for the entire financial year. This power reduces the necessity for repetitive filings, enabling exporters to concentrate on their primary activities.
Exploring the LUT Bond
The submission of a new LUT for each subsequent financial year is required, as LUTs in GST have a one-year validity period. If the exporter fails to meet the specified terms, they must provide bonds within the designated timeframe, resulting in the withdrawal of LUT’s associated privileges.
When exports occur without payment of the Integrated Goods and Services Tax (IGST), bonds are required for other assessments. Bonds and LUTs are applicable in the following scenarios:
- Goods Export: Exporting goods to a country outside of India without payments of IGST.
- Zero-rated supply to SEZ: Exporting to Special Economic Zones (SEZs) without the payment of IGST.
- Service Export: Providing services to clients in other countries without paying IGST.
Documents Required for GST LUT Registration
You will need the following documents to apply for a Letter of Undertaking (LUT) under GST:
- ID as well as address proof of authorized person.
- A letter of request signed by someone with the right to do so.
- Granting power to the authorized signatory.
- Make sure you meet the eligibility requirements (no serious tax evasion cases).
- Copy proof of your GST registration.
- Identification using PAN card.
- Copy of IEC Code if included in exports.
- Application form for LUT.
- Cheque from your associated bank account that has been cancelled.
We provide Custom Solutions for your legal problemns
Contact us
Security, Confidente & Reliable Solutions
Contact us
Calculate all your liabilites and pay as well
Contact us
Procedure for Filing Online LUT under GST
The following are the steps to file a LUT online:
- Login to the GST Portal.
- Go to the menu bar and select the ‘Service’ option. Under the ‘Service’ option, go to the ‘User Service’ option’ and select the Tab “Furnishing Letter of Undertaking”.
- Now, Form GST RFD-11 is displayed.
- Select the Financial Year for which period you must furnish the Letter of Undertaking.
- You can also upload LUTs that belong to an earlier period by clicking on the choose file option and uploading the LUT file.
- If you have already provided your LUT offline for the previous period, please attach it here and proceed with filing your application.
- If you’re filing LUT, please read and select all three check boxes for accepting the conditions prescribed in the Letter of Undertaking.
- In the independent witnesses’ section, enter the name, address, and occupation of two witnesses.
- Enter the location of the form’s filing in the Place field.
- Choose a different authorized signatory or the primary authorized signatory to sign the application.
- To preview the form, click the PREVIEW button.
- Click on SAVE to save the form and retrieve it later.
- Click on SIGN AND FILE WITH EVC or SIGN AND FILE WITH DSC.
- Once you sign and file the form, you cannot edit it. Before signing and submitting, kindly recheck at least once.
Summary
With the GST LUT Form, exporters can export goods abroad without having to pay the Integrated Goods and Services Tax (IGST) first. Exporters who are registered taxpayers must use Form GST RFD-11 to send the Letter of Undertaking (LUT) on the GST portal. The LUT makes it easier to export goods, stops people from having to pay taxes right away, and leaves working capital open, especially for SMEs. To file electronically, you need to go to the GST portal, fill out the form, and send it in with the required papers. Every year, exporters must register, and the LUT is only good for one financial year.
FAQ’s
Exporters can use the GST LUT Form to export goods without having to pay the Integrated Goods and Services Tax (IGST) first.
To file a GST LUT, all registered taxpayers who export goods or services are required to use Form GST RFD-11.
Anyone who is a registered taxpayer and exports goods or services is qualified, if they are not being charged with tax evasion involving Rs. 250 lakh or more.
Tax-free exports, process simplification, working capital liberation, and the avoidance of duplicate files are all made possible by filing a LUT.
Each year, you need to renew the GST LUT because it is only valid for one financial year.
The LUT privileges may be withdrawn, as well as the exporter is required to furnish bonds.
Documents include the authorized person’s identification and proof of address, a canceled check, a PAN card, proof of GST registration, and an IEC code, if applicable.
Sign in to the GST portal, fill out Form GST RFD-11, and send it in with the documents you need to file a GST LUT online.