GST LUT Form

GST LUT Form

The GST LUT (Letter of Undertaking) form is a declaration provided by exporters to the Goods and Services Tax (GST) authorities, allowing them to export goods and/or services without the need to pay GST upfront. This is beneficial for businesses involved in exports, as it helps in avoiding the requirement to pay integrated tax (IGST) at the time of export and also ensures a faster refund process.

What is GST LUT?

A Letter of Undertaking (LUT) is a document under the Goods and Services Tax (GST) system, which allows exporters to export goods and services without paying Integrated Goods and Services Tax (IGST) on their exports. The LUT assures the government that the exporter will comply with GST regulations, including the payment of taxes and the submission of proper export documentation.

Eligibility for GST LUT

• Exporters: Any business that exports goods and/or services can apply for GST LUT, provided they meet the eligibility criteria.
• GST Registration Required: The business must be registered under GST.
• Turnover Criteria: The LUT can be filed by exporters who do not have any pending GST liabilities or have a clean record under GST compliance.
• No Need to Pay IGST: LUT is generally applied by exporters who wish to avoid paying IGST on export sales.

Advantages of GST LUT

1. No IGST on Exports: The main advantage is that exporters do not need to pay IGST on their exports, ensuring better cash flow for the business.
2. Faster Refunds: Without the need to pay IGST upfront, businesses can claim refunds quickly for any input tax credit (ITC) related to exports.
3. Simplified Export Process: It simplifies the export procedure as the exporters are not required to pay taxes at the time of export, which reduces the administrative burden.
4. Tax-free Exports: Exporters can make tax-free exports and pass on the benefit to their customers abroad.

Who Needs to File GST LUT?

Exporters of goods and services who wish to export without paying IGST on export goods need to file the GST LUT form. This is applicable to:

• Goods Exporters
• Service Providers (Exports of Services)
• Special Economic Zone (SEZ) Exporters
• Exporters of Zero-Rated Goods and Services

Steps to File GST LUT Form

Login to the GST Portal:

• Go to the official GST Portal.
• Use your GST credentials to log in to your account.

Navigate to the LUT Form:

• Under the "Services" tab, select "User Services" and then click on "Furnish Letter of Undertaking".
• Alternatively, under the "Returns" tab, select "Furnish LUT".

Fill in the LUT Application:

• Fill out the required details in the application form, such as:
  • Name of the business.
  • GSTIN (GST Identification Number).
  • Nature of the business.
  • Type of export (whether goods or services).
  • Any other relevant details requested by the portal.

Declaration and Submission:

• After filling out the form, read the declaration carefully.
• Submit the LUT form by digitally signing it with your DSC (Digital Signature Certificate) or using an EVC (Electronic Verification Code).

Acknowledgment:

• Upon successful submission, an acknowledgment will be generated. The LUT will be approved by GST authorities within a few days, and you will receive confirmation on the portal.

Download the Approved LUT:

• Once approved, you can download the filed and approved GST LUT from the portal. Keep it for future reference.

Documents Required for Filing GST LUT

• GST Registration Certificate: The GST registration number must be active.
• Exporter's Declaration: A declaration that the exporter will abide by all GST rules and regulations.
• Financial Standing: In some cases, the financial standing of the applicant (company) may be verified by GST authorities.
• Bank Details: Bank account details of the applicant, as some exporters may need to submit proof of their business activity.

GST LUT Form: Key Details

• Form Name: GST RFD-11
• Due Date for Filing: There is no specific deadline for filing LUT, but it should be submitted before making any export.
• Validity: The GST LUT is valid for one financial year, after which it needs to be renewed.

GST LUT vs Bond: What's the Difference?

• GST LUT: Suitable for businesses that wish to export goods/services without paying IGST. It does not require security or a guarantee, making it a simpler option.
• GST Bond: Exporters who do not want to file an LUT may file a bond, which requires the payment of a security deposit or bank guarantee. The bond is used as a security for compliance with GST rules and regulations.

Common Issues While Filing GST LUT

1. Inactive GSTIN: Ensure that your GST registration is active before applying.
2. Pending Returns: GST LUT cannot be filed if there are any pending returns or tax liabilities under GST.
3. Incorrect Details: Double-check your business information and export details to avoid rejection.
4. Missing Documents: Ensure all documents and declarations are submitted correctly to avoid delays.

GST LUT FAQs

1. What is the validity of GST LUT? GST LUT is valid for one financial year. It must be renewed at the beginning of each new financial year.

2. Is it mandatory to file GST LUT? It is mandatory for exporters who wish to export goods or services without paying IGST. However, businesses with a turnover of less than ?5 crore can also voluntarily file LUT.

3. Can I file GST LUT after exporting? No, the LUT must be filed before the export transaction takes place to ensure that no IGST is paid.

4. How long does it take to get approval for GST LUT? It generally takes a few days for the GST authorities to approve the LUT, but processing times may vary.

Need Help with GST LUT Filing?

If you're unsure about how to file your GST LUT or need help with your export transactions, feel free to contact us. Our expert team can guide you through the entire process and ensure compliance with GST regulations, making your export business smoother and more efficient.