LUT for GST
Furnish LUT in GST, to Sell without Payment of GST
- Exporters have an option to either pay IGST on exports and then claim refund of GST paid amount, or furnish Letter of Undertaking (LUT) and sell without payment of GST
- In LUT, the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment.
- Expected service delivery in 1-2 working days
File LUT in GST
What is LUT and why is it used?
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.
Any person can apply for LUT if they:-
- Intended to supply goods or services to India or Overseas or to SEZs
- Are registered under GST
- Wish to supply goods or services without payment of an integrated tax
Validity of LUT (Letter of Undertaking)
An LUT remains valid for current financial year from the date of its submission. Example- If LUT was furnished in FY 2021-2022, then the date of expiry of the validity of such LUT is 31st March 2022. Therefore, you need to file fresh LUT for FY 2022-2023.
If the goods for export are not exported within three months of Date of Invoice issue, then the Exporter is liable to pay GST along with 18% interest within 15 days according to Section 50 (1). Also in case of payment for services are not received within one year for which the LUT has been submitted, the exporter is liable to pay GST @ 18% within 15 days. Failing to do so will lead to withdrawal of LUT facility and on subsequent payments, it can again be restored.
Benefits of Filing LUT – FOR Exporters
By opting for the LUT, an exporter can export goods or services without having any payment of taxes. If this option is not opted by the exporter will have to pay taxes on their export and later claim a refund on the zero rated exports.
Documents Required for LUT Filing under GST ?
- Copy of GST registration.
- Pan Card of the entity.
- KYC of authorised person/signatory.
- Cancel Cheque of Entity
- KYC documents of two witnesses
- Nature of employment of witnesses
- Copy of last year LUT (if any).
Important Point To Remember for filing of LUT
- An LUT remains valid for current financial year from the date of its submission. Example- If LUT was furnished in FY 2021-2022, then the date of expiry of the validity of such LUT is 31st March 2022. Therefore, you need to file fresh LUT for FY 2022-2023.
- NO bank guarantee required in case of letter of undertakin.
- The LUT must be duly applied and signed by the authorised signatory of the company, firm, etc.