What is the Letter of Undertaking under GST?
LUT under GST stands for “Letter of Undertaking”. It is prescribed to be furnished in the GST form RFD 11 under rule 96 A. It is required in case of export undertaken without paying IGST. Also, according to the Notification No. 37 /2017 – Central Tax, it is mandatory to furnish LUT to export goods or providing services or both without paying IGST. If the exporter fails to provide the LUT, then he has to pay IGST or to provide an export bond. Earlier LUT could only be filed offline at the concerned GST office. But to make the process smooth and taxpayer friendly, the Government has made the LUT filing online.
Who needs to file LUT?
A person intending to supply goods/services
- To outside India or
- Places covered under Special Economic Zone
- Without paying integrated tax and
- Is also registered under goods and services tax(GST)
Process for Filing LUT in GST?
At Tax Intel, you will get facilitation to smoothly file and furnish LUT and so to file a Letter of Undertaking (LUT) in case where the exports are made without payment of taxes, below are the process to be followed.
- Send us the Required Documents as mentioned below for online LUT.
- Provide the Name, Occupation and Address of two independent witnesses
- Our professional team will fill and submit LUT form GST RFD-11
- We will get signed the application form using the registered Digital Signature Certificate (DSC) or electronic verification code (EVC) of the selected authorized signatory (Please note that DSC is mandatory in case of company or LLP)
- After successful submission of form GST RFD-11 a downloaded copy of the letter of undertaking will be provided to you for your future reference.
Documents required to file of LUT (Letter of Undertaking)?
An LUT can be submitted by any individual, Firm or companies etc. who is registered under GST provided he has not been executed in case of tax evasion exceeding Rs.250 lakh or any other offense.
- 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
- Cancelled Cheque
- Authorized letter
Validity of LUT (Letter of Undertaking)
The LUT submitted is valid for the whole financial year in which it is submitted. One need to submit a new LUT separately for each financial year. If the goods for export are not exported within three months of Date of Invoice, 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. However it can again be restored after paying of applicable GST.