The full form of LUT is “Letter of Undertaking” that has been laid down to be furnished in form GST RFD 11 under rule 96A where the exporter claims that he or she will satisfy the needs listed under GST when exporting without making the payment of GST. It is mandatory to file LUT in GST in order to export goods and services without doing the payment of IGST (Integrated Taxes). Unless you furnish the888 LUT, you cannot carry out export without payment of IGST.
What is LUT in GST?
The Letter of Undertaking is nothing but the document that is provided by the user where he claims the fulfillment of all requirements under GST. As mentioned above, it is usually furnished when the export is carried out without the payment of IGST. Notification No. 37/2017 – Central Tax has made it compulsory to provide LUT if anyone wants to export goods or services by avoiding the payment of IGST. In case of failure to furnish the LUT by the exporter, he or she has been levied to provide an export bond or pay IGST. Initially, the LUT has to be filed offline by visiting a particular GST office but nowadays the process of filing LUT has become easy with online LUT filing.
Why is LUT used?
As mentioned above, LUT under GST is made into use for those registered taxpayers who want to make exports without making a payment of IGST. He or she should furnish LUT (Letter of Undertaking) in GST RFD-11 form through the GST portal.
When to apply/file a LUT and what was the scenario before GST?
One should file a Letter of Undertaking online on the GST portal prior to the export of goods or services. Earlier, registered exporters have been asked to submit the signed and filed RFD-11 manually on Business letterhead in duplicate:
- One with the documents of Export to the Customs clearing authority.
- Another one to the Assistant Commissioner/Jurisdictional Deputy that have authority over their principal area of business where the Export documents are verified through the medium of ICEGATE.
The initial excise regime makes the exporters involve in operating expenses and lose considerable time on this compliance. In due course, the procedure has now been made very quick and simple and thereby brings transparency in the whole procedure of exports by a registered exporter to all the involved stakeholders. It is to be noted that the furnishing of Bond should be submitted manually by being on a non-judicial stamp paper.
How to file online LUT on the GST portal?
The process of filing LUT online on the GST portal is as follows:
- Login to www.gst.gov.in with valid credentials.
- Then click on the menu bar and choose the option ‘Service’. Below the ‘Service’ option, you have to select the ‘User Service’ option and then the tab “Furnishing Letter of Undertaking”. You will see the Form GST RFD-11.
- Choose the fiscal year or financial year for which you want to provide the LUT or else you can even upload LUT of earlier duration by clicking on the option ‘Choose file” and then upload it.
- In case if you have already provided LUT offline by visiting the office for the previous period, you can attach the same document here and submit your application.
- Before you submit the application, you should read the conditions given in the Letter of Undertaking and select all three checkboxes.
- In the column of name, address, and occupation of the independent witnesses, you have to enter the name and address of two witnesses.
- And then in the section of the place, you have to enter the location where the filing is done.
- Next, you have to choose the name of the Main Authorized signatory or any other Authorized signatory who wants you to sign the application form.
- At the very end, you can preview the complete form by clicking the button ‘PREVIEW’.
- Then click the ‘SAVE’ button to save the application form to recover later.
- At last, select the button ‘SIGN AND FILE WITH EVC’ or ‘SIGN AND FILE WITH DSC’.
- Once it is signed and submitted, you cannot edit the form so you should recheck the form carefully before it is signed and submitted.
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Eligibility for Export under Letter of Undertaking under GST
An individual who want to supply goods or services to or out of India, without paying IGST, places covered below Special Economic Zone, or he or she is registered under GST should fulfill the following conditions to get eligible for applying LUT:
- The LUT would be furnished on the letterhead of the individual register under GST. It should be filed in duplicate for a fiscal year. It should be appended to form GST RFD-11 and can be issued by the Company Secretary, MD, partner, or person duly signed by the proprietor or the company.
- The prosecution of the person under IGST or CGST or any other existing laws should not exceed the tax amount of Rs. 250 lakhs.
- If an individual does not pay the tax within the timeframe as per Central Goods and Services Act, the provision of exporting goods or services without payment of IGST would be withdrawn until it is paid.
FAQs related to LUT in GST
1. How I get my LUT number to check my LUT submissions on the GST portal?
If you want to view your previous submissions of LUT on the GST portal, you can follow the below-given steps:
- Visit the URL www.gst.gov.in.
- Use the valid credentials to log in to the GST portal.
- Select Services and then User Services and then View My Submitted LUTs command.
2. What if my already furnished LUT got approved?
If your LUT was already provided manually and got accepted by the Tax Authority for the present financial year, he or she can then upload that particular LUT on the GST portal to seek online approval for the same.
3. Do I have a limitation to upload the previous LUT?
Of course, you have. Only one LUT full form Letter of Undertaking can be uploaded in one application that does not exceed the size of 2 MB. If you want to upload another LUT, you can file a new application.
4. How would I know about the completion of the process of furnishing LUT?
Once you file LUT successfully, the system will generate acknowledgement and ARN number so that you would be notified about the successful filing of LUT via Email and SMS as well. You can also download the PDF acknowledgement as a record.
5. By whom the LUT in the GST application would be signed?
The LUT application is required to be signed by Primary Authorized Signatory or any other Authorized Signatory to verify it with DSC or EVC. However, the Authorized Signatory can be the proprietor, the managing director, the working partner, or by an individual duly authorized by the Board of Directors or such working partner or such company or proprietor to proceed with the form.
6. What if a Tax Official does not execute the LUT application?
The LUT application will be deemed approved and the status will change to “Deemed Approved” if it is not processed by Tax Official within 3 working days with a notice for clarification. When it is deemed approved, you can download an order copy by clicking the options Dashboard>Services>UserServices>ViewAdditional Notices/Orders.