GST LUT

The Latest LUT Features for FY 2021-22

Online Legal India LogoBy Online Legal India Published On 04 Aug 2021 Updated On 06 Jan 2023 Category GST

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.

Reasons Exporters File the LUT

The exporters file the LUT to avail of several benefits that are provided by the Govt. 

  • Without tax-paying, the LUT can offer the exporters to continue their export business.
  • LUT is a sure benefit, especially for SME (Small and Medium enterprises) exporters. LUT makes SME exporters tension-free regarding their working capital.
  • The Union Government has made the GST LUT online and thus it has made it easy for regular exporters. Just by submitting minimal official documents, the regular exporters can now file the Letter of Undertaking online. Even there are experts available from Online Legal India™ to assist you in e-filing the LUT. 

So, you can be a regular exporter or you may be an SME exporter; LUT filing is beneficial for everyone. If you have found an LLP company after LLP company registration, you can avail the benefits of making an export business.

GST LUT filing

Documents Required for LUT Filing

A few stipulated documents are required for LUT filing. You can have a look at the documents.

  1. PAN Card of the applicant
  2. IEC (Import Export Code) copy
  3. GST registration copy 
  4. GST RFD 11 form
  5. Canceled cheques

These are the necessary official documents you need for filing the LUT online. 

New LUT Features Introduced by GSTN in FY 2021-22

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 on LUT

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.

Validity and Other Important Aspects of LUT 

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 Acceptance Duration

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.

How Online Legal India™ Can Support You

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. 


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