GST LUT Filing

GST LUT Filing is Letter of Undertaking filed on GST Portal in Form RFD-11. GST LUT filing is required in case of export of goods or services without payment of taxes.

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Comprehensive Guide on GST LUT Filing in India

1. Introduction

Letter of Undertaking (LUT) is an essential compliance requirement for exporters under the Goods and Services Tax (GST) regime in India. It allows exporters to supply goods or services without the payment of Integrated GST (IGST), thus easing cash flow constraints. This guide provides a step-by-step overview of GST LUT filing, its eligibility, conditions, and the process involved.

2. Understanding GST and Export Compliance

Under GST, exports are classified as “zero-rated supplies,” meaning that the exporter can:

Option 1: Pay IGST on exports and later claim a refund.
Option 2: Export goods or services without payment of IGST by furnishing a Letter of Undertaking (LUT).

Choosing the second option helps businesses avoid upfront IGST payments, improving cash flow and simplifying the refund process.

3. Eligibility for GST LUT Filing

The following taxpayers are eligible to furnish LUT:

All registered exporters supplying goods or services overseas or to Special Economic Zones (SEZ) without payment of IGST.
Exporters who have not been prosecuted under GST law where the tax evaded exceeds INR 250 Lakhs.

If a taxpayer does not meet these criteria, they must furnish an export bond along with a bank guarantee instead of LUT.

4. Validity of GST LUT

The LUT is valid for one financial year, expiring on March 31st of every year.
Exporters must renew LUT at the beginning of each financial year by filing Form GST RFD-11.
Failure to renew LUT may result in the requirement to pay IGST on exports until the new LUT is submitted.

5. Procedure for GST LUT Filing

Exporters can file LUT online on the GST Portal by following these steps:

5.1 Online LUT Filing on GST Portal

Login to GST Portal: Visit www.gst.gov.in and log in with your credentials.
Navigate to LUT Form: Click on Services > User Services > Furnish Letter of Undertaking (LUT).
Select Financial Year: Choose the financial year for which the LUT is being applied.
Upload Required Documents: Provide details such as:
1. Exporter’s GSTIN
2. Details of authorized signatory
3. Signature and verification by the exporter
Declaration & Submission: Accept the declaration terms and submit the LUT form using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Acknowledgment & Approval: Upon successful submission, an acknowledgment receipt is generated. The GST officer reviews the application, and upon approval, the LUT is deemed accepted.

5.2 Documents Required for GST LUT Filing

GST Registration Certificate
Import Export Code (IEC)
PAN Card of the entity
Authorized signatory details
Previous year LUT (if applicable)
Self-declaration stating compliance with LUT conditions

6. Consequences of LUT Violation

If an exporter violates the conditions of LUT, the GST authorities can:

Revoke the LUT and mandate the exporter to furnish a bond with bank guarantee.
Demand the payment of IGST on exports.
Initiate penal actions in case of fraudulent claims.

7. ITC and Refund Process under LUT

Input Tax Credit (ITC) on Exports: Exporters supplying goods/services under LUT can claim a refund of unutilized ITC.
Refund Application: The exporter must file Form GST RFD-01 to claim ITC refunds on inputs used for exports.
Supporting Documents for Refund:
- Export invoices
- Shipping bill or airway bill
- Bank realization certificate (BRC)

8. Special Cases in LUT Filing

8.1 Exports with Multiple GST Registrations

If a business has multiple GST registrations in different states, LUT must be filed for each GST registration separately.

8.2 Supplies to SEZ under LUT

Supplies made to SEZs qualify as “zero-rated” and can be made without IGST payment under LUT.
The process remains the same as regular exports.

With evolving tax laws, exporters should stay updated and ensure compliance. Proper LUT filing and adherence to GST guidelines help businesses streamline operations and maintain tax efficiency. If you need professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091 expert services can ensure smooth and accurate filing.

9. Additional Resources

For further reading, explore:

GST Registration Process in India – Step-by-step guide for obtaining GST registration.
GST Refund Process for Exporters – Understanding how to claim refunds efficiently.
GST e-Invoicing System in India – Understanding its Applicability, Benefits, and Mechanism.
GST E-Way Bill System in India – Understanding its Applicability, Benefits, and Mechanism.

Frequently Asked questions (FAQs) on GST LUT Filing

General Information about LUT

1. What is a LUT (Letter of Undertaking)?

A LUT is a document furnished by an exporter to the government, undertaking that they will export goods or services within a specified time frame and comply with all the export-related regulations. It allows exporters to supply goods or services without paying Integrated Goods and Services Tax (IGST).

2. Why is an LUT required?

An LUT is required for: Exporting goods or services without paying IGST. Availing the benefit of zero-rated supplies. Simplifying the export process.

3. Who can file an LUT?

Any registered GST taxpayer who is exporting goods or services can file an LUT. However, certain categories of exporters (like those who have been prosecuted for tax evasion) might not be eligible.

4. What is the validity period of an LUT?

An LUT is valid for the entire financial year in which it is filed. It needs to be renewed every financial year.

Filing the LUT

5. How do I file an LUT?

LUT filing is done online through the GST portal (www.gst.gov.in).

6. What is the process for filing an LUT?

The process generally involves: Visiting the GST portal. Logging in to the GST account. Navigating to the “Services” tab and selecting “Furnishing Letter of Undertaking (LUT).” Selecting the relevant financial year. Filling out the online LUT form. Providing details of the witnesses. Submitting the LUT.

7. What documents are required for filing an LUT?

No specific documents are uploaded during the online LUT filing. However, the exporter should have the following readily available: Details of the export shipments (past exports). Details of the witnesses (name, address, occupation). Bank details (for refund claims, if applicable).

8. Who can be witnesses for an LUT?

Any two independent and credible individuals can be witnesses. They should ideally be individuals with some standing in the community or business.

9. Is there a fee for filing an LUT?

There are no fees for filing an LUT.

10. How long does it take to process an LUT?

The LUT is typically processed immediately upon submission. There is no separate approval process.

Post-Filing Considerations

11. What happens after I file the LUT?

After filing the LUT, you can export goods or services without paying IGST. You will need to mention the LUT details on the export invoice.

12. Do I need to submit any proof of export after filing the LUT?

While not directly related to the LUT filing itself, you will need to maintain proper documentation of your exports (e.g., shipping bills, invoices) to substantiate your zero-rated supplies and avoid any issues with the tax authorities.

13. What if I don’t export the goods or services within the specified time frame?

If you fail to export within the time frame specified in the LUT, you may be required to pay the IGST along with interest.

Other Considerations

14. Can I file an LUT for deemed exports?

Yes, you can file an LUT for deemed exports as well.

15. What is the difference between an LUT and a bond?

LUT: A simpler undertaking given by the exporter.

Bond: A more formal document involving a security or guarantee. Bonds are generally required if the exporter is not eligible to file an LUT.

16. When is a bond required instead of an LUT?

A bond might be required if the exporter has a history of non-compliance or if they fall under certain specific categories as determined by the tax authorities.

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Foreign Owner

Special Entities

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Return & Compliances

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