GST LUT Filing
The letter of undertaking is a document where
the user declares that all GST obligations have been met.
The letter of undertaking is a document where
the user declares that all GST obligations have been met.
LUTs
can be used by any registered taxpayer exporting goods or services. Any person
who has been prosecuted under the act for tax evasion for an amount of Rs. 2.5
crores or more are not eligible to provide LUTs.
The
validity of such LUTs is limited to one year (till the end of the financial
year). Every financial year, an exporter who provides LUTs must provide new
LUTs. If the LUT conditions are not met within the timeframe, the privileges
are removed, and the exporter is required to post bonds.
If
the export is made without payment of IGST, bonds should be provided to all
other assesses (together with those who have been prosecuted for tax evasion of
Rs. 2.5 crores or more under the GST legislation). Letters of the undertaking
can be provided and submitted online via the GST portal.
At
the same time, the bonds must be filled out manually because a hard copy must
be sent to the department. LUT/Bonds can be used in the following transactions:
Before
exporting goods or services, a letter of undertaking must be filed/submitted
online. Previously, exporters had to manually submit the filled and signed
RFD-11 on Business letterhead in duplicate –
This,
like the previous excise scheme, resulted in exporters losing a significant
amount of time and money on compliance. Finally, this procedure has been
rationalised and simplified, providing transparency to all stakeholders engaged
in an exporter's whole export process. Note that the bond must be presented on
non-judicial stamp paper and submitted manually.
·
Step 3: From
the 'LUT Applied for Financial Year' drop-down list, choose the financial year
for which the Letter of Undertaking is applied. E.g., 2021-22.
Note: If the Letter of Undertaking is already submitted by
you manually for any of the prior periods, please upload it using the 'Choose
File' option on the same window.
Ascertain the following:
Only PDF and JPEG files are accepted.
The upload file size limit is 2 MB.
·
Step 4: On the
Letter of Undertaking Form/ GST RFD-11 that displays on the screen, please fill
in the information required. On the form, the following must be completed:
Self-Declaration (a): Mark each of the three boxes by clicking on
them.
Exporter commits to the following by doing so:
Export of goods/services must be completed by three months of the
date of issue of the Export invoice or within any prescribed time authorised by
the Commissioner.
(b) Provide Information to Independent Witnesses: Mention the
names, occupations, and addresses of two independent witnesses in the red
boxes.
It is noteworthy that the Witnesses listed in the Letter of
Undertaking (LUT) are also listed on the running Bond/Bank guarantee.
·
Step 6: Sign and
submit the form using one of the following methods:
The Letter of Undertaking can be signed by the primary authorised
signature or any additional authorised signatory. The Managing Director, the
working partner, the Firm Secretary, the proprietor, or a person duly
authorised by such active partner or the Board of Directors of such company or
proprietor to execute the form, can all be authorised signatories.
DSC submission: Sign the application with
the authorised signatory's registered Digital Signature Certificate.
To access this feature, go to 'SIGN AND FILE WITH DSC' > 'SIGN
AND FILE WITH DSC'. A message box with a warning appears. 'PROCEED'> is
selected. The system generates a unique ARN (Application reference number).
OR
Submit with EVC: To use this option, go to
'SIGN AND FILE WITH EVC' >The system will send an OTP to the authorised
signatory's registered mobile phone number and e-mail address. Enter the OTP in
the pop-up > A submission warning notice box appears > 'PROCEED'> is
selected to sign the application. The system creates a unique ARN (Application
reference number)** for each company or limited liability partnership. A
message of confirmation arrives. By e-mail and SMS, the GST Portal transmits
this ARN to the Taxpayer's registered e-mail and mobile number.
The acknowledgement can be downloaded by clicking the DOWNLOAD
button. You can also look at the Letters of Undertaking previously posted on
the GST website.
On the landing page, 'SERVICES' > 'User Services' > 'View my
Submitted LUTs' Choose a timeframe > View the list of LUTs available within
the given period>To see the details of a Letter of Undertaking, click 'VIEW'
next to it.
LUT and Bonds Format in RFD-11
The following is the format of the RFD-11:
LUT application form:
Letter
of Undertaking is the full form/meaning of LUT under GST. It is required to be
submitted in the form GST RFD 11 under rule 96 A, in which the exporter confirms
that they will comply with all GST requirements when exporting without paying
IGST.
Furnishing
a bond or a Letter of Undertaking to facilitate the export of goods or
services.
According
to Central Tax Notification No. 37 /2017, to export products, services, or both
without paying IGST, you must provide LUT. If the exporter does not supply the
LUT, he must pay the IGST or post an export bond. Previously, LUTs could only
be lodged in person at the appropriate GST office.
Use
valid credentials to access the GST Portal. 3. Select the Furnish Letter of
Undertaking (LUT) command from the Services > User Services menu.
Following
are the steps for renewal of LUT
Before
making a zero-rated supply of goods or services, all registered taxpayers must
submit a LUT in Form GST RFD-11 on the GST Portal. Log in to the GST Portal
with valid credentials.
If
the LUT is not filed, the exporter must first pay the appropriate tax while
exporting before claiming a refund to be eligible for zero-rated exports.
It
is not possible to export without a LUT. Before making zero-rated shipments, an
exporter must provide a bond or Letter of Undertaking (LUT) to the
jurisdictional Commissioner, according to the regulations.
Enable
the option Provide LUT/Bond details? On the Company GST Details page, input the
LUT/Bond Details panel information. Navigate to Tally Gateway > Accounting
Vouchers > F8: Sales. Choose the appropriate Sales ledger.
It
is not required to get your LUT cancelled.
How
do I submit a LUT for exports online without paying GST? To submit a LUT
online, go to gst.gov.in and navigate to Services>User Services>Furnish
Letter of Undertaking (LUT). You should fill out all required fields and then
submit the form online.
How
do I check the status of my LUT?