GST LUT Filing - Letter of Undertaking Filing for Exporters
Are you an exporter aiming for hassle-free export operations? GST LUT Filing is your key to smooth, tax-free exports. With the right guidance, you can easily export goods and services without paying Integrated Goods and Services Tax (IGST) upfront.
Tax Consultant Noida simplifies the process of GST LUT Filing, ensuring a seamless experience from start to finish. Our experts help you file your Letter of Undertaking (LUT) efficiently, so you can focus on growing your export business.
What is GST LUT?
The Letter of Undertaking (LUT) is a document under the Goods and Services Tax (GST) system that allows exporters to make supplies without paying IGST. It acts as a legal declaration that you will comply with all GST regulations while exporting goods or services.
By completing GST LUT Filing, exporters can ship their goods or provide services to foreign clients without the burden of paying IGST at the time of supply. Instead of paying taxes upfront and waiting for refunds, you can focus on expanding your business.
Why is GST LUT Filing Important for Exporters?
Here’s why GST LUT Filing is essential for every exporter:
Export Without IGST: The primary advantage is the ability to export goods and services without paying Integrated Goods and Services Tax (IGST).
Improved Cash Flow: By avoiding upfront tax payments, exporters keep their working capital free, improving liquidity for business operations.
Simplified Refund Process: Filing LUT in GST eliminates the need to claim tax refunds later, saving time and effort.
Compliance with GST Regulations: Submitting an LUT keeps you in line with GST laws, avoiding penalties or legal issues.
Eligibility Criteria for GST LUT Filing
Not all exporters can file an LUT. Here’s who is eligible:
Registered Taxpayers: Any taxpayer registered under GST involved in the export of goods or services can apply.
No Major Tax Evasion History: Businesses facing prosecution for tax evasion exceeding ₹250 lakh are ineligible for LUT registration.
Intended Export Supply: Businesses supplying goods or services outside India or to Special Economic Zones (SEZs) can apply.
Documents Required for GST LUT Filing
- Cover Letter requesting acceptance of LUT: A cover letter addressing the Assistant/Deputy Commissioner of GST of respective division required on the top of application.
- A copy of GST Registration Certificate
- Form GST-RFD-11- Original Two Set
- Original Two Sets of Annexure of Letter of Undertaking (LUT) on Letter Head of entity. Signatures of all undertaker (s) should be verified by the Bank Manager. It also require two witnesses
- Such annexure of LUT should be notarized
- Attach personal IDs of both witnesses. Ensure that name and address on personal IDs must match with the detail mentioned in LUT.
- Attach personal IDs and PAN of all undertakers.
- Attach Incorporation documents of the entity. (e.g. Partnership deed for Partnership firm, Certificate of Incorporation for Company/LLP, etc.)
- PAN of Entity
- Copy of Board Resolution/Authorization Letter authorizing director/ partner to file application.
- Entity has not been prosecuted for any offense under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws for any amount of tax evasion
- It’s eligible for LUT in terms of export sales and corresponding collections during the previous year. (This is not required after 04.10.2017 wherein turnover requirements waived off for exporters)
- Prepare a summary of invoices raised against export sales and get it certified from Chartered Accountant. Attach all invoices of export sales (This is not required after 04.10.2017 wherein turnover requirements waived off for exporters)
- Prepare a summary of collections against export sales during the year and get it certified from Chartered Accountant. Attach all evidence for such collections (e-brc or bank statement). (This is not required after 04.10.2017 wherein turnover requirements waived off for exporters)
- Copy of IEC code, if available.
Step-by-Step Process of GST LUT Filing
Here’s how Tax Consultant Noida simplifies the GST LUT Filing process:
Step 1: Document Preparation
We gather and verify all required documents for your GST LUT Application.
Step 2: Online Submission on GST Portal
We file your LUT via the GST Portal Filing system using GST RFD-11 Form.
Step 3: Review and Approval
After submission, the jurisdictional GST Commissioner reviews the application. If everything is in order, the LUT gets approved.
Step 4: LUT Validity
The LUT remains valid for the current financial year. It must be renewed annually.
Advantages of GST LUT Filing
- Zero-Rated Supply: Supply goods and services to foreign countries and SEZs without IGST.
- Unblocked Working Capital: Keep your funds free for business operations instead of locking them in tax payments.
- Simplified Export Procedures: Avoid the tedious process of claiming refunds by opting for GST LUT Filing.
- Legal Compliance: Stay aligned with GST compliance norms and avoid penalties.
LUT Validity and Renewal
The LUT is valid for one financial year. After that, it must be renewed to continue exporting without IGST. If any conditions of the LUT are breached, the privilege may be revoked, and the exporter might be required to furnish a LUT Bond.
Common Scenarios Where LUT is Applicable
- Export of Goods Without IGST
- Export of Services Without IGST
- Zero-Rated Supply to SEZs
Why Choose Tax Consultant Noida for GST LUT Filing?
- Expertise in GST Compliance
- Seamless Documentation & Filing Process
- End-to-End Support from Application to Approval
- Timely Renewal Reminders for LUT Validity
- Affordable Pricing with No Hidden Charges
FAQs on GST LUT Filing
GST LUT Filing refers to submitting a Letter of Undertaking (LUT) under GST to export goods and services without paying IGST.
All GST-registered taxpayers involved in exporting goods or services or supplying to SEZs can file an LUT, provided they haven’t been prosecuted for significant tax evasion.
You should file your LUT at the beginning of each financial year (before April 1st) to continue exporting without paying IGST.
If you don’t file an LUT on time, you must pay IGST on exports and later claim a refund, which is a time-consuming process. There’s no specific penalty, but delayed refunds can impact cash flow.
There’s no turnover limit for filing an LUT. Any GST-registered exporter can file it, provided they meet eligibility criteria.
- Must be renewed every year
- If conditions aren’t followed, authorities may revoke LUT benefits
- Some paperwork and compliance are required.
Yes, but you will have to pay IGST first and then claim a refund, which is time-consuming.
A Letter of Undertaking (LUT) is a declaration that allows exporters to supply goods or services without paying IGST.tent
