A Letter of Undertaking or LUT is an undertaking filed by an exporter of goods or services that allows him to subject goods or services without payment of IGST, subject to the condition that he exports that goods or services within the stipulated time frame.
According to the Notification No. 37/2017 – Central Tax, it is necessary for exporter to file LUT for exporting goods or services or both to avoid paying the IGST
An exporter fails to submit LUT, is required to pay IGST or provide an export bond. Previously LUT was available only to file offline at the concerned GST office. But now, the Indian government has made the LUT filing process online to make the process easier.
It will take One day to get registration of LUT. We get Acknowledgement no 15 kind of digital no. when we complete LUT
Who can apply for LUT
A person registered with GST, who does exports of goods or services and willing to avoid IGST on exported goods and services.
• Outside India including special particular zones, i.e., zero-rated supply
• Without paying integrated tax
Every registered person is allowed to file LUT subject to fulfilment of following conditions:
All exporters of goods and services and registered with GST are able to submit LUT, except those exporters who have been prosecuted for an offense and the amount of tax evasion of CGST Act or the Integrated Goods and Services Tax Act, 2017 or any other Under Rs. 250 lakhs current legislation.
A person applying for registration under LUT is required to avail of this through an online portal of GST. The partner, company secretary, MD, or any authorized person is allowed to register GST RFD-11 through GST portal.
The facility of export of goods or services without paying the Integrated Goods and Services Tax will not be available if the exporter fails to export the goods or services within the given time period under the GST law.
LUT Valid for One Year
Once you submit the LUT it will be valid for the entire financial year. For every financial year, you will have to submit LUT.
Documents for LUT
• 2 witness (other than directors) address proof
• login id and password of GST
• DSC(if company/LLP)
• Import-export code
No attachments required for applying LUT.Aadhaar card of witness is required only to get the proper name and complete address.
Exports without tax payment
By filing LUT under GST, an exporter is able to export goods or services without paying the taxes. Incase LUT is not filed, the exporter has to pay the required taxes while making exports and then later may claim a refund to avail benefit of zero-rated exports.
Cost of LUT
The service cost of LUT is so cheap that we can easily afford this service
The easy and online process
Both LUT and its acceptance filing have been done online since April 2018. The applicant is not required to go to the authorities for approval. The entire process can be completed online by submitting some required documents.
The exporter is at liberty to file LUT / Bond with the Central Tax or State Tax Authority until the process of handing over the taxpayers to their respective authorities is implemented