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LUT Registration

Letter of Undertaking is abbreviated as LUT. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid.

Filing LUT is convenient than refund mode as the exporters do not wish to indulge into hassles of refunds and block their funds. The eligibility criteria to apply for LUT is comparatively relaxed than to the erstwhile system.

Letter of Undertaking is filed online using the form GST RFD 11. By filing LUT, the exporter undertakes that all the requirements prescribed for this route will be fulfilled by him.

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Who Needs To File Letter Of Undertaking (Lut) In Gst(Form Gst Rfd-11)?

GST LUT is to be submitted by all GST registered goods and service exporters. The exporters who have been prosecuted for any offense and the tax evasions exceeding Rs 250 lakhs under CGST Act or the Integrated Goods and Service Act, 2017 or any existing laws are not eligible to file the GST LUT. In such cases, they would have to furnish an Export bond.

Here the motive of the government was to expand the export base by providing reliefs on exports. GST experts from IndiaFilings can help you with GST LUT filing or Export bond Filing.

Under CGST Rules,2017, any registered person can furnish an Export bond or LUT in GST RFD 11 without paying the integrated tax. They can apply for LUT if:

  • They intend to supply goods or services to India or overseas or SEZs
  • Are registered under GST
  • They wish to supply goods without paying the integrated tax

Documents Required For Filing Lut In Gst

Following are the documents required for filing Letter of Undertaking(LUT) in GST.

  • LUT cover letter – request for acceptance – duly signed by an authorized person
  • Copy of GST registration
  • PAN card of the entity
  • KYC of the authorized person/signatory
  • GST RFD11 form
  • Copy of the IEC code
  • Cancelled Cheque
  • Authorized letter

How To File Letter Of Undertaking (Lut) In Gst?

Follow the simple 3 Step procedure to File Letter of Undertaking(LUT) Online

  • Avail GST filing/ monthly LUT filing package from LegalDocs
  • Our team will connect with you on a monthly basis for details.
  • LegalDocs expert team will file LUT and will share the acknowledgement.

Form Rfd 11 Format

The Form RFD-11 is filed in the format below:

Registered Name :

Business Address :

GSTIN (GST number) :

Date of furnishing :

Signature, date, and place :

Details of witnesses (Name, address, and occupation) :

Export Bond For Gst

Entities that are not eligible to submit a Letter of Undertaking based on the conditions mentioned will have to furnish an export bond and a bank guarantee. The applicant needs to cover the amount of tax involved in the export based on estimated tax liability self-assessment.

Export bond should be furnished on non-judicial stamp paper of the value as applicable in the State in which the bond is being furnished.

Also, exporters can furnish a running bond, so that export bond needs not to be executed for each export transaction. However, if the outstanding tax liability on exports exceeds the bond amount at any time, then the exporter must furnish a new bond to cover the additional liability.

A bank guarantee can be mandated along with an export bond. The value of the bank guarantee should usually not exceed 15% of the bond amount. However, based on the exporter’s track record, the bank guarantee required to be submitted with the export bond can be waived off by the jurisdictional GST Commissioner.

Benefits of filing LUT under GST

01.

Exports without tax payment

By filing LUT under GST, an exporter can export goods or services without paying the taxes. If LUT is not filed, the exporter must first pay the required tax while making exports and then claim a refund to avail benefit of zero-rated exports.

02.

Saves Working Capital

The regular exporters are at a huge benefit by filing LUT online as the refund process under another route is a time-consuming process. During which the bunch of capital is blocked in the form of a due refund. With this mode, the capital is free to be utilized for other necessary requirements. It also reduces the cost of exports.

03.

An Entire Financial Year Validity

The Letter of Undertaking, once filed is valid for the whole financial year in which it is filed. Hence, unlike refund process, an exporter does not need to go through the procedural requirements every time an export consignment is carried out.

04.

Simple and online process

The filing of LUT and its acceptance, both are made online since April, 2018. The applicant does not need to visit the officers for acceptance. The whole process can be completed online by submitting a few required documents.

Frequently Asked Questions​

All registered taxpayers who export the goods or services will have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the GST portal in order to make exports without payment of IGST.

Letter of undertaking has to be filed /submitted online before exporting the goods/services. Prior to this, exporters had to manually submit the filled and signed RFD-11 on Business letterhead in duplicate.

GSTIN and Name (Legal Name) of the Taxpayer will be prefilled based on login. The Taxpayer needs to select the financial year for which LUT is being filed, enter the name, address, and occupation details of two independent and reliable witnesses.

Primary authorized signatory/Any other Authorized Signatory needs to sign and file the verification with DSC/EVC. The authorized signatory can be the working partner, the managing director, or the proprietor or by a person duly authorized by such operating partner or Board of Directors of such company or proprietor to execute the form.

It is mandatory to furnish the Letter of undertaking (LUT) to export the goods, services, or both without paying the IGST.

If LUT is not filed, the exporter must first pay the required tax while making exports and then claim a refund to avail benefit of zero-rated exports.

To view the submitted Letter of Undertaking (LUT) at the GST Portal, perform the following steps:

  • 1. Access the GST Portal at www.gst.gov.in URL. …
  • 2. Login to the GST Portal with valid credentials.
  • 3. Click the Services > User Services > View My Submitted LUTs command.

Following are the documents required for filing Letter of Undertaking(LUT) in GST.

  • LUT cover letter – request for acceptance – duly signed by an authorized person
  • Copy of GST registration
  • PAN card of the entity
  • KYC of the authorized person/signatory
  • GST RFD11 form
  • Copy of the IEC code

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