tax registration services

GST LUT Registration

Letter of Undertaking is abbreviated as LUT. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes.

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    An Overview

    Letter of Undertaking is abbreviated as LUT. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid. Filing LUT is convenient than refund mode as the exporters do not wish to indulge into hassles of refunds and block their funds. The eligibility criteria to apply for LUT is comparatively relaxed than to the erstwhile system. Letter of Undertaking is filed online using the form GST RFD 11. By filing LUT, the exporter undertakes that all the requirements prescribed for this route will be fulfilled by him.

    Benefits of filing LUT under GST

    • Exports without tax payment
    • An Entire Financial Year Validity
    • Saves Working Capital
    • Simple and online process

    Document Required

    Entity’s PAN Card

    KYC of Authorised Signatory

    Witnesses

    GST Registration

    IEC Certificate

    Cancelled cheque

    GST LUT Registration

    Frequently Asked Questions

    What should be filed in the letter of undertaking?

    GSTIN and Name (Legal Name) of the Taxpayer will be prefilled based on login. The Taxpayer needs to select the financial year for which LUT is being filed, enter the name, address, and occupation details of two independent and reliable witnesses.

    Is it mandatory to record them manually approved LUT in online records?

    It is not mandatory, but if the Taxpayer wants to record the manually approved LUT to be available in online records, he can furnish it with the online application.

    Who has to sign the LUT application?

    Primary authorized signatory/Any other Authorized Signatory needs to sign and file the verification with DSC/EVC. The authorized signatory can be the working partner, the managing director, or the proprietor or by a person duly authorized by such operating partner or Board of Directors of such company or proprietor to execute the form.

    How would I know that the process of furnishing the LUT has been completed?

    After successful filing, the system will generate ARN and acknowledgment. You will be informed about successful filing via SMS and Email, and you can also download the acknowledgment as a PDF.

    Is it possible to view the LUT application after filing?

    Yes, the Taxpayer will be able to see his LUT after filing.

    Is it mandatory to file GST LUT?

    It is mandatory to furnish the Letter of undertaking (LUT) to export the goods, services, or both without paying the IGST.

    What happens when the exporter fails to furnish the LUT?

    In case if the exporter fails to provide the LUT then he has to pay the IGST or furnish an export bond.

    Who is eligible to furnish LUT under GST?

    Any person who is exporting goods or services can furnish the LUT.

    Who is not eligible to furnish under GST?

    A person who has been prosecuted for evading tax of Rs. 2.5 crore or above under the act cannot furnish the LUT.

    What documents are required for GST LUT filing?

    LUT cover letter- duly signed by an authorized person Copy of the GST registration PAN of the entity.

    What if the LUT is not furnished on time?

    If the LUT is not filed on time the exporter is required to pay the tax while carrying out exports and then claim a refund to avail the benefit of the zero-rated exports.

    What is Form RFD 11?

    Furnishing of the bond or letter of the undertaking for export of goods or services in Form RFD 11.