LUT under GST: The Letter of Undertaking, also known as LUT, is a declaration made by exporters under rule 96A of the GST laws. By filing the LUT in Form GST RFD-11, exporters affirm that they will fulfill all GST requirements while exporting without making any IGST payments.
Who can furnish a Letter of Undertaking?
Any registered person under GST who intends to supply goods or services to India or overseas or SEZs and wishes to supply goods without paying integrated tax can apply for LUT/bond under the CGST Rules, 2017.
All GST registered exporters of goods and services are required to submit the GST LUT, except for those who have been prosecuted for offenses and tax evasion exceeding Rs 250 lakhs under CGST Act or Integrated Goods and Service Act, 2017, or any existing laws. In such cases, an Export bond must be furnished instead.
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How to apply LUT for FY 2023-24?
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.
Taxpayer will have the facility to save the application at any stage for 15 days. Saved application can be retrieved from Dashboard > Services > User Services > My Saved Applications.
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What are the steps for LUT under GST filing?
1. Login to https://services.gst.gov.in/services/login
2. Click on the services tab and under that select the User services and the select Furnish LUT
3. Under the “LUT applied for Financial year” select the financial year you want to file your LUT for.
If your LUT for the previous period is furnished offline, then you are required to attach it by clicking choose file as shown on the screen below and continue.
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4. Fill the details in the form appearing on the screen
Then you need to tick mark by clicking against the three boxes. By doing this, the exporter undertakes
- Export of goods will be done within three months from the date of issue of export invoice or this time may be extended if allowed by the Commissioner.
- The exporter needs to abide by GST law in respect of exports.
- To pay Integrated tax along with Interest if failed to export.
*Interest must be paid at the rate of 18% per annum for the period From the date of issue of export invoice up to the date of payment of integrated taxes
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5. Mention witnesses for generating LUT
Independent Witnesses Information: Fill the name, Occupation, and address of two independent witnesses in the boxes highlighted here
We need to declare the witnesses of the LUT on running bonds/ Bank guarantee.
6. Preview Letter of Undertaking (LUT)
Enter Place of Filing your LUT under the place of filing LUT and then click on SAVE after saving your document you can preview your Document by clicking on the preview to verify the form before submission
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7. Signing of Letter of Undertaking
File the form after signing it.
- The exporter or any other authorized signatory can sign the letter of Undertaking.
- Authorized signatories include partners, MD or company Secretary or the proprietor or any other person authorized by these people.
We can sign the application with Digital Signature Certificate of the authorized signatory. Click on the ‘Sign and file with DSC’ a warning message box appears, click on PROCEED button. Then the system provides the application reference number.
We can also submit with EVC: Click on ‘Sign and file with EVC.’ Then you will receive an OTP to your registered mobile number; you will also get an email notification for the same. Enter the OTP in the pop-up message then you will receive a warning box for submission. You need to click on PROCEED to get your application reference number.
*LLPs and companies can only use DSC for filing
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8. Getting LUT confirmation
Then you will get an email notification and SMS to your registered mobile number.
9. Download your GST Letter of Undertaking
You can now download your acknowledgment by clicking on the DOWNLOAD option
