GST LUT Filing

What does LUT imply in the context of GST?

Letter of Undertaking (LUT) is the full form/meaning of LUT under GST. It is required to be submitted in the form GST RFD 11 under rule 96 A, in which the exporter certifies that he or she will comply with all GST requirements when exporting without paying IGST.

Who is required to submit a LUT in Form GST RFD-11?

GST All GST-registered goods and service exporters must file a LUT. Exporters who have been prosecuted for any offences or tax evasions totalling more than Rs 250 lakhs under the CGST Act, the Integrated Goods and Services Act, 2017 or any other legislation are not eligible to file the GST LUT. They would be required to provide an Export bond in such situations.

The government’s goal here was to broaden the export base by granting export tax breaks. SRCC’ GST specialists can assist you with GST LUT .

Any registered person can submit an Export bond or LUT in GST RFD 11 without paying the integrative tax under the CGST Rules, 2017.

GST Documents Required for a LUT

An LUT can be submitted by any GST-registered individual who has not been sentenced to death for tax evasion of more than Rs.250 lakh or any other violation.

  • Request for approval of LUT cover letter – properly signed by a person with authority
  • GST RFD11 form copy of GST registration PAN card of the entity KYC of the authorised person/signatory
  • a duplicate of the IEC code
  • Cheque Rejected
  • Letter of authorization
What is the procedure for filing a LUT in GST?

The processes for a Letter of Undertaking (LUT) in the case of non-payment of taxes are outlined below.

Check the standards for supplying and jurisdiction. Additional papers pertaining to the bank guarantee must be prepared if a bond is to be submitted.

Prepare all of the required paperwork for Bonds. Bonds must be accompanied by the following documents:

(In the case of bonds)

  1. Bond on stamp paper, Form RFD-11 Bank guarantee Authority letter
  2. Other supplementary materials
  3. A separate bond is not needed to be furnished for each consignment. Instead, he can furnish a running bond. A running bond helps the exporter to carry forward the same terms and conditions in the bond for the next consignment.
  4. A duplicate copy should be prepared along with an official document.
  5. The next step is to submit the documents to the department and get the same verified by a relevant officer to avoid any rejection
  6. After filing the document, a signed letter shall be issued by the officer acknowledging the same.
Eligibility for filing LUT in GST

Who is eligible to utilise a Letter of Undertaking (LUT)?

Letters of Undertaking can be used by any registered taxpayer who exports goods and services. Anyone who has been convicted of tax evasion for an amount over Rs. 250 lakh is disqualified.

Such LUTs are only valid for one year, and an exporter must provide a new LUT for each financial year. If the LUTs’ criteria are not met within the stated time frame, the exporter’s rights will be withdrawn, and the exporter will be required to post bonds.

If the export is made without the payment of IGST, other assesses must provide bonds. LUTs / Bonds can be used for a variety of purposes.

  1. Zero-rated supplies to SEZs without IGST payment
  2. The export of products to a nation outside of India without having to pay the IGST.

It is not paying IGST since it is delivering services to a client in a nation outside of India

Filing of Letter of Undertaking (FORM GST RFD-11)

The Form RFD-11 is filed in the format below: 

  • Registered Name
  • Address
  • GST No.
  • Date of furnishing
  • Signature, date, and place
  • Details of witnesses (Name, address, and occupation)
GST Bond for Export

Entities who do not meet the criteria for submitting a Letter of Undertaking will be required to provide an export bond and a bank guarantee. Based on anticipated tax liability self-assessment, the applicant must cover the amount of tax involved in the export.

The export bond should be issued on non-judicial stamp paper with the appropriate value for the state in which it is being issued.

Exporters can also provide a running bond, which eliminates the requirement to execute an export bond for each export transaction. If, at any point, the outstanding tax due on exports exceeds the bond amount, the exporter must provide a new bond to cover the deficit.

Form for Bonds:
  • Registered Name
  • Address
  • Amount of bond furnished.
  • Date of furnishing
  • Amount of bank guarantee furnished.
  • Signature, date, and place
  • Details of witnesses (Name, address, and occupation)

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