GST LUT Filing
Regulatory Compliance and Licensing
Regulatory Compliance and Licensing
Regulatory Compliance and Licensing
Regulatory Compliance and Licensing
Regulatory Compliance and Licensing
Regulatory Compliance and Licensing
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GST LUT Filing Overview
The Letter of Undertaking (LUT) under GST is a document filed by exporters to export goods or services without paying integrated tax (IGST). LUT filing is beneficial as it allows exporters to carry out exports without blocking working capital by paying taxes and then claiming refunds. Every registered taxpayer who wants to export goods or services without paying IGST must furnish an LUT in Form GST RFD-11.
Who Can File LUT?
Any registered person who intends to export goods or services without payment of integrated tax can file LUT. However, the person should not have been prosecuted for any offense under the CGST Act or any other existing law where the amount of tax evaded exceeds ₹250 lakh.
Benefits of Filing LUT
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Zero Payment of IGST
Exporters can avoid upfront payment of IGST on goods or services exported.
Faster Export Process
Eliminates the waiting period for IGST refunds, accelerating the export process.
Working Capital Efficiency
Reduces the strain on working capital, as there’s no need to wait for tax refunds.
Eligibility for Filing LUT
Proof of Business Registration / Incorporation
- The exporter must have no history of tax evasion or any prosecution involving an amount exceeding ₹250 lakh.
- LUT is applicable for all types of exporters, including merchant exporters and service providers.
Documents Required for LUT Filing
GST Registration Certificate
PAN Card of the Business
Authorized Signatory’s Aadhaar Card or PAN Card
Export Proof ( In case of previous exports )
Authorization Letter
If the filing is done by an authorized signatory on behalf of the business.
Canceled Cheque
LUT Form (RFD-11): To be filled out and signed by the authorized signatory.
Steps to File LUT Online
Login to GST Portal
Go to [www.gst.gov.in](http://www.gst.gov.in), and log in with your GSTIN and password.
Navigate to the LUT Filing Section
Under the Services’ tab, go to ‘User Services’, and select ‘Furnish Letter of Undertaking (LUT)’.
Fill in the Details
In the GST RFD-11 form, provide details such as the business’s name, address, and export details.
Upload Documents
Attach the required documents such as previous export invoices (if applicable) and authorization letters.
Submit the Application
Sign the application using the Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) and submit.
Acknowledgment
Once submitted, you will receive an acknowledgment receipt, and the LUT will be processed. Upon approval, an LUT reference number will be generated.
Validity of LUT
An LUT is valid for the entire financial year in which it is filed. For each new financial year, a fresh LUT must be submitted.
FAQs on GST LUT Filing
1. What is the Letter of Undertaking (LUT)?
An LUT is a declaration that an exporter files with the GST department to export goods or services without paying integrated tax (IGST).
2. Who is required to furnish an LUT?
Exporters who want to export without paying IGST must furnish an LUT. This applies to both goods and service exporters.
3. What is the process of filing an LUT?
The process involves logging into the GST portal, filling out Form GST RFD-11, uploading relevant documents, and submitting the form for approval.
4. Is LUT mandatory for all exporters?
No, LUT is not mandatory for all exporters. Exporters who do not wish to file an LUT can still export goods or services by paying IGST and later claim a refund of the tax paid. However, filing LUT helps avoid the upfront payment of IGST, making it a preferred option for most exporters.
5. What happens if I don’t file an LUT?
If you don’t file an LUT, you must pay IGST on your exports and then claim a refund, which can impact your working capital.
6. How long does it take to process LUT approval?
The processing of LUT applications is generally quick, and approval is often granted within a few days after submission, provided all documents are in order.
7. Is LUT filing required every year?
Yes, LUT must be filed every financial year. A fresh LUT must be submitted for each new year.
8. Can an LUT be canceled or revoked?
Yes, the tax authorities can revoke the LUT if they find any violation of the conditions specified during the filing, such as failing to export within the stipulated time.
9. Is there any penalty for not filing an LUT?
There is no direct penalty for not filing an LUT, but if you don’t, you will need to pay IGST on exports and then claim a refund, which could delay the recovery of taxes and affect cash flow.