LUT for Exports under GST

What is LUT under GST?

LUT is Letter of Undertaking to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfil all the requirements prescribed under GST while exporting without making IGST payment.

Who has to furnish a LUT?

Any registered person availing the option to supply goods or services for export /SEZs without payment of integrated tax has to furnish, prior to export/SEZs supply, a Letter of Undertaking (LUT), if he has not been prosecuted for tax evasion for an amount of Rs 2.5 Crore or above under the CGST Act/IGST Act/Existing law. Example of transactions for which LUT can be used are:

• Zero rated supply to SEZ without payment of IGST.
• Export of goods to a country outside India without payment of IGST.
• Providing services to a client in a country outside India without payment of IGST.

How to file LUT on portal?

All registered taxpayers who have zero-rated supply of goods or services have to furnish LUT in Form GST RFD-11 on the GST Portal before affecting such supply. Access the GST portal and login using valid credentials. Navigate to Services > User Services > Furnish Letter of Undertaking (LUT) command to file LUT.

What details are to be filled while applying for LUT?

GSTIN and Name (Legal Name) of the Taxpayer would get prefilled based on login. 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. Taxpayer also needs to select all the points of self-declaration before filing the LUT.

Fow how much period a LUT is valid?

The validity of such LUT’s is for a period of one year (till the end of financial year). An exporter furnishing LUT’s is required to furnish fresh LUT for each financial year. If the conditions mentioned in LUT are not satisfied within the time-limit, the privileges are revoked and the exporter will have to furnish bonds.

Who has to sign the LUT application?

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

Process for filing application for LUT

Go to www.gst.gov.in and login.

Click the Services > User Services > Furnish Letter of Undertaking (LUT) command.

Form GST RFD-11 is displayed. Select the financial year for which LUT is applied for from the LUT Applied for Financial Year drop-down list.

Click the Choose File button to upload the previous LUT.

Note:
• Only PDF or JPEG file formats are allowed.
• Maximum file size for upload is 2 MB.

Select the declaration checkboxes.

In the Name, Address and occupation of the independent and reliable witnesses section, enter the name and address of 2 witnesses.

In the Place of Filing LUT field, enter the place.

In the Name of Primary/ Other Authorized Signatory drop-down list, select the name of authorized signatory.

In the Place field, enter the place where the form is filed.

In case you want to save the form and retrieve the form later, click the SAVE button to save the form.

A confirmation message is displayed that application is saved successfully.

Note: You can navigate to Services > User Services > My Saved Applications to retrieve the saved application later.

Click the PREVIEW button to preview the form.

The form is displayed in the PDF format.

Click the SIGN AND FILE WITH DSC or SIGN AND FILE WITH EVC button.

Note: If you have saved the form and retrieving it later, you need to select the name of authorized signatory and enter the place where the form is filed before filing the form.

Click the PROCEED button.

• Submit with DSC: Sign the application using the registered Digital Signature Certificate of the selected authorized signatory.
• Submit with EVC: If the EVC option is selected, the system will trigger an OTP to the registered mobile phone number and e-mail address of the authorized signatory. Enter that OTP in the pop-up to sign the application.

Note :
• The system generates an ARN and displays a confirmation message.
• GST Portal sends the ARN at registered email and mobile of the Taxpayer by e-mail and SMS.
• You can click the DOWNLOAD button to download the acknowledgement.

Note: You can click the DOWNLOAD button to download the acknowledgement.

Conclusion :

In summary, the GST Letter of Undertaking (LUT) is essential for exporters availing zero-rated supply. The blog provides a concise guide on filing LUT, covering details, validity, and the application process. Compliance ensures uninterrupted export privileges, making the GST process smoother for exporters.