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time as mentioned under the Central Goods and Services Act, the facility of exporting without payment of IGST is withdrawn till it is paid.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.