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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Letter of Undertaking commonly abbreviated as LUT. All the exporters of Goods need to comply with the provisions of GST Act, all exports are subject to IGST and the exporter are required to comply with GST provisions with either of two options:
- Either to Pay IGST and then claim refund against export by submitting export related documents.
- Not to pay IGST, instead make an export without payment of IGST
In order to comply with the 2nd option, i.e. not to pay IGST and to make an export without payment of IGST, it need to mandatorily applied for the LUT.
Procedure for making export without payment of IGST and furnishing LUT
The exporter can make an application for furnishing Bond or LUT in form GST RFD-11 on GST Portal. Exporters which are eligible for furnishing GST LUT filing / Bond online are:
- All GST Registered exporters which are intended to supply goods or services from India to overseas or to SEZ
- All exports need to execute without payment of Tax.
- In case of goods or services exported under Bond or LUT, the exporter become eligible to claim refund of accumulated ITC (Input Tax Credit) on account of export.
- In case of export of goods, only shipping bill is required to be filed with the customs. No need to file ARE 1 / ARE 2.
- All export of goods are to be made under self-sealing and self-certification without intervention of departmental officer.
- Shipping Bill filed with the customs will be treated as valid document for satisfying the export of goods.
- Supplies made to SEZ will be treated in same manner as export of goods / services, it require following same process as required for normal export of goods / services.
- In case the export has multiple GST registration then such exporter need to apply for the Bond / LUT based upon the premised from where the export of goods / services will actually happen. In order to save from unambiguity, it is advisable to apply for bond / LUT from all the registered place of business.
- The facility of furnishing Bond / LUT for the purpose of making export without payment of taxes is not available for those taxpayers who have been prosecuted for any offence under the GST Act in any case where the amount of tax evaded exceeds INR 250 lakhs.
Applicability of the GST LUT filing granted is valid for maximum of 12 months which expires on 31st day of March in every financial year. GST LUT filing is granted financial year wise and it require to be renewed and re-applied in proper form GSTR RFD-11 at the beginning of every new financial year.
The LUT granted are subject to certain conditions which require fulfilling by the exporter, in the violation of any condition, the LUT granted will lead to revocation and the exporter need to furnish Bond duly executed on non-judicial stamp paper and accompanied by Bank Guarantee. The Bond amount covers the estimated tax liability based on the assessment of the exporter.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your GST LUT Filing and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfill in order to carry out GST LUT filing economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need.