Who can File a GST Letter of Undertaking LUT?

Any business entity registered under the taxation system of the Indian Taxation System can file a GST LUT for commencing an Export Business.

When the GST LUT is mandated to be filed?

If a business entity is willing to incorporate an Export Business, it should file the GST LUT using the online platform. For the first time, the LUT can be filed at any time, but from the following, GST LUT must be filed within the same Financial Year.

What are the required documents for filing GST LUT?

To file GST Letter of Undertaking, the applicant is needed to furnish the GST Registration Certificate, IEC Code, PAN+Aadhaar Details of the business personnel and the business entity along with the bank credentials.

What is the Validity of a GST LUT?

As per the provisions of the GST Act, 2017, the duration of a filed LUT is the entire financial year.

Is any witness/nominee required in LUT filing?

Yes. In the time of GST LUT filing, the applicant is needed to furnish 2 Nominees/Witness, one of them should be an employed Accountant of the particular entity.

Learn More About Letter of Understanding(LUT) under GST

By Online Legal India Published On 18 Dec 2020 Updated On 06 Jan 2023 Category GST

What is LUT in GST?

A LUT in GST means Letter of Understanding is a document that exporters can file to export goods or services without having to pay for any taxes. In the new GST regime, all exports are subject to IGST, which can later be reclaimed via a refund against the tax paid.

What is the eligibility criteria to apply for LUT?

A person intending to supply goods/services

To or outside India or
Places covered under Special Economic Zone
Without paying integrated tax and
Is also registered under goods and services tax
An individual is eligible to apply for LUT if the below-mentioned conditions are fulfilled. There has never been the prosecution of the person under the Central Goods and Services Tax Act (CGST) or the Integrated Goods and Services Act (IGST) 2017 or any other existing laws. Where the amount of tax levied exceeds Rs. 250 lakhs.
The LUT shall be provided on the letterhead of the person registered under GST. It should be furnished in duplicate for a financial year. LUT is presented in the annexure to form GST RFD-11 and can be issued either by the partner, MD, Company Secretary or by the person duly signed by the company or the proprietor.
If a person fails to pay the tax within the stipulated time as mentioned under the Central Goods and Services Act, the facility of exporting without payment of IGST is withdrawn till it is paid.

Documents Required for LUT under GST

Copy of GST registration.
Pan Card of the entity.
KYC of authorised person/signatory.
GST RFD 11 form.
Copy of IEC code.
Cancelled Cheque.
Authorized letter.
LUT cover letter -– duly signed by an authorised person.

Benefits of filing LUT – for Exporters

Export without tax payment.
Saves Working Capital
1 FY year Validity
Online Process Saves Time

How can we help you?

Online Legal India™ expert team of highly qualified CA/CS will guide you through the rest of the process for filing LUT under GST. We are economical and give budgeted services for ones who are willing to start a company/business or any other kind of Registration/ License.