GST LUT Filing Service
Letter of Undertaking is commonly known as LUT. The Letter of Undertaking (LUT) is prescribed to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment. Know more about exports under GST.
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GST LUT Filing
Benefits of filing LUT
- By filing LUT under GST, an exporter can export goods or services without paying the taxes.
- The regular exporters are at a huge benefit by filing LUT online as the refund process under another route is a time-consuming process and it reduces the cost of exports.
- The Letter of Undertaking, once filed is valid for the whole financial year in which it is filed
- The filing of LUT and its acceptance , both are made online since April, 2018. The applicant does not need to visit the officers for acceptance.
Pricing
(Simple & Clear Pricing. No Hidden Charges)
| Government Fee | Rs 0 |
| Professional Fees | Rs 1,459 |
| Goods & Service Tax | Rs 00 |
| Total Cost | Rs 1459 |
File Letter of Undertaking (LUT) in GST
(All you need to know)
Letter of Undertaking is the LUT full form in GST. This is a paper manufacturer could use to pay less tax on merchandise they sell. Any shipments liable to IGST underneath the current Goods and Service Tax can be recovered later via a refund against the tax paid.
Alternate possibilities might appear quite appealing given the problems many exporters encounter in receiving tax refunds. A LUT in GST saves exporters the time and effort of requesting a refund and the risk of cash being blocked due to tax payments. Its filing may be completed entirely online, making it extremely simple and quick.
1. Entity’s PAN Card: A Copy of PAN card of the exporter entity.
2. KYC of Authorised Signatory: A Copy of PAN card and Aadhar card of partners/directors
3. Witnesses: Information of at least two witnesses along with the address proof and PAN
4. GST Registration: GST Registration Certificate of the exporter is required
5. IEC Certificate
: The IEC certificate must be submitted
6.Cancelled cheque
: A Copy of cancelled cheque of current account of exporter
When bond or LUT is filed under GST? what all laws govern them?
Filing of bond or LUT depends upon the total foreign receipts in the previous year. If you have received more than 1 Cr foreign exchange then you are required to file LUT instead of bond. Bond is required to be filed in following three cases:
- New Exporter or First Time Export: If you are a first time exporter of goods or services, then also you need to file the bond because you have no exports receipts in the previous year. Hence, if you are a first time exporter, you need to file bond with a bank guarantee.
- Foreign receipts less than 1 Crore: If you have total foreign receipts less than 1 crore, then you cannot file the LUT instead you need to file the bond with 15% bank guarantee.
- Foreign receipts less than 10% : If you have received less than 10% foreign receipts then also you need to file the bond. E.g. if you receive total FE of 2 crore and your total turnover is Rs. 50 Crore, then you shall need to file bond and not LUT.
Validity of LUT (Letter of Undertaking)
The LUT submitted is valid for the whole financial year in which it is submitted. You need to submit a new LUT for each financial year. If the goods for export are not exported within three months of Date of Invoice issue, then the Exporter is liable to pay GST along with 18% interest within 15 days according to Section 50 (1). Also in case of payment for services are not received within one year for which the LUT has been submitted, the exporter is liable to pay GST @ 18% within 15 days. Failing to do so will lead to withdrawal of LUT facility and on subsequent payments, it can again be restored.
Process of filing LUT under GST:-
Discussion and collection of basic Information. Collection of required documents
Preparation for the Letter of Undertaking. Online Submission of LUT
Sharing Acknowledgment bearing ARN
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Frequently Asked Questions
What is a LUT number in the GST card, exactly?
The Letter of Undertaking Bond (LUT connection) is an abbreviation for Letter of Undertaking, a document filed by an exporter to be exempt from paying IGSTon exports. To increase exports, they granted exporters the option of filing a LUT in GST that allows them to export without paying IGST.
Who can apply for LUT in GST?
Every VAT licenced product and activity producer must file a GST under LUT. Entrepreneurs convicted of any violations and revenue prevarications totalling more than ₹250 lakhs underneath the CGST Rules, the Central Goods and Services Treat or any other legislation are not qualified to apply the LUT in GST.
What is LUT in GST?
An entrepreneur could transfer items and services, avoiding paying any taxes if they file a LUT in GST. If indeed the LUT is just not completed, the producer should first pay significant income while exporting before claiming a reimbursement to be eligible for shipping whatsoever.
Is an LUT filed once will be valid for Lifetime?
No, A fresh LUT should be filed for each new financial year.
What are the consequences of non filing of LUT?
If LUT is not filed, all exports will be treated as domestic sales and IGST will have to be paid on the same.
Still, have confusion?
Our expert will help you in choosing the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@taxtorium.com or call us @ +91 820 956 9514
