Lettet of Undertaking (LUT)

 

 

All registered taxpayers who export the goods or services will now have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the common portal of GSTN in order to make exports without payment of IGST. Letter of the undertaking has to be filed /submitted online before exporting the goods/services.  Earlier LUT could only be filed offline at the concerned GST office. But to further ease the process the Government has made the LUT filing online.

 

Hence, If you are engaged in Import Export business, then it would always be a great option to file an LUT for getting exemption from paying GST.

 

Under GST, there are two options being provided to exporters of goods or services or both for effecting such supplies:

 

• Submit an LUT or Bond (as applicable) to Commissioner of GST. In this case, there is no need to pay tax on exports and assessee can claim refund of GST paid on its inward supplies.

 

• Pay IGST on exports and then after claim refund for the same.

 

 

 

 

 

Benefits of filing LUT

 

• Once you submit the LUT, it is valid for one whole year.

 

• There would be no additional compliance.

 

• IGST will not have to be paid on exports for a year.

 

 

Due date and validity of LUT

 

A fresh LUT should be filed for each new financial year. One LUT will be valid for one financial year. That means if you have filed an LUT for FY 2019-20, it would expire on 31st March, 2020. So for FY 2020-21, a Fresh LUT needs to be filed.

 

 

 

DOCUMENTS REQUIRED FOR LUT FIILING UNDER GST

 

• KYC documents of two witnesses

 

• Nature of employment of witnesses

 

• Copy of last year LUT (if any).

 

PROCESS FOR FILING LUT CERTIFICATE

 

• First you have to logon to GST portal for filing LUT certificate

 

• Under “SERVICE TAB”, select “USER SERVICES” drop down has option of FURNISH LETTER OF UNDERTAKING (LUT)

 

• After selecting this option, you have to select the financial year for which you want to file letter of undertaking

 

• Than upload pdf copy of last financial year LUT (if any).

 

• Fill the name of two witnesses along with their address and occupation

 

• Next you have to fill the place of filing. once this procedure complete, you may preview the form

 

• The application can be signed with a registered digital signature certificate or via electronic verification code. Both options appears on the form. Once signed and submitted, the form cannot be edited.

 

 

Getting Yours With Upriselegal

 

 

With our experienced and skilled personnel, We at UpriseLegal makes process of Letter of Undertaking (LUT) in GST very smooth and helps you in each and every step at a very affordable prices. You don’t have to worry on how to do Letter of Undertaking (LUT) in GST, as UpriseLegal is there to provide all the assistance that you need. We follow law to the core and uses our knowledge to avoid any hassles in your business so that you can rise and grow!  You may get in touch with our compliance manager on 9173512402 or email us at info@upriselegal.in for free consultation.