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23 Jun, 2022
The exporters usually file the LUT or Letter of Undertaking to export goods and services. The Letter of Undertaking permits the exporter to export goods or services without IGST (Integrated Goods and Services Tax) payment.
Earlier, LUT could only be filed by going to the GST office but now GST LUT Filing is possible by using the online mode. The Government of India has created the system easy for everyone. The LUT filing remains valid on a financial year basis. For each financial year (FY), you have to e-file the LUT.
The exporters file the LUT to avail several benefits that are provided by the Govt.
So, you can be a regular exporter or you may be an SME exporter; LUT filing is beneficial for everyone. If you have founded an LLP company after LLP company registration, you can avail the benefits of making export business.
A few and stipulated documents are required for LUT filing. You can have a look at the documents.
These are the necessary official documents you need for filing the LUT online.
GSTN (GST Network) has introduced new features regarding LUT in the GST portal. The GST rule says now all the exports to the SEZ (Special Economic Zone) will be considered under the IGST (Integrated GST).
However, the IGST Act 2017, Section 16(3)(a) depicts that if an exporter submits the LUT (Letter of Undertaking) then the exporter may be exempted from tax payment. Later, the exporter can ask for a refund of an input tax credit.
The CGST Rule 2017, rule 96A stipulates that any exporter who has GST registration can fill up the GST RFD-11 form to be exempted from the IGST payment. Moreover, registering for LUT for FY 2021-22 has been started for exporting purposes after 1st April 2021.
The GSTN common portal has been activated for the LUT purpose in FY 2021-22. If you submit the LUT now then the form will be valid till 31st March 2022.
As you know, the LUT remains valid for one particular financial year. Section 50 (1) says if the goods bound for export are not exported within three months then you have to pay GST with an 18% interest rate. Here, the three months refer to the stipulated time from the invoice issue date.
LUT always remains on the priority list as it is designated to export in the foreign market or SEZ. The rule is if the exporter submits the LUT along with the self-declaration form then it is bound to be accepted within three working days.
The export business is always very lucrative for exporters to earn a hefty amount of profit. The LUT for export under GST is a must for the exporters who want to begin the export business in the foreign market or SEZ.
When you have the support of Online Legal India™ legal experts, they can file-up the LUT (Letter of Undertaking) on behalf of you. Not only LUT, but the experts can support you in creating the IE Code (Import Export Code) also. The Online Legal India™ team has a good number of experts who can adequately support you with GST registration and the LUT filing process.