Letter of Undertaking (LUT)
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 fulfil all the requirements prescribed under GST while exporting without making IGST payment.
All GST registered goods and service exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs. 250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws. In such cases, where the exporter is not eligible to file LUT, they would have to furnish an export bond.
TAXAJ can help you with GST LUT filing or export bond filing. Get in touch with our GST Experts to know more about exporting under LUT or export bond.
Letter of Undertaking (LUT) is required in case of export without payment of IGST. A LUT has a validity of one financial year.
It usually takes 1 to 2 working days.
- Eligibility Consultation
- LUT certificate (online)
- Business Hour CA Support
- Individuals and companies engaged in export of goods or services
- Purchase of Plan
- Submission of LUT form in GST portal
- Receipt of ARN number
- LUT certificate
- The documents needed shall depend on the service you need at a particular point of time. The same shall be communicated to you by our experts based on your requirements.
- Name and Address of 2 witness
- What is the validity of LUT?
A LUT is valid for one financial year.
- What is the benefit of LUT?
If you furnish LUT, then you can export goods and services without payment of IGST.
I want to know more about Letter of Undertaking (LUT) for Exports.
According to the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.All GST registered goods and services exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws.
Letter of Undertaking will be valid for a period of twelve months from the date of submission. If the exporter fails to comply with the conditions of the Letter of Undertaking, privileges could be revoked and the exporter would be required to furnish a bond. All exporters are required to submit letter of undertaking or export bond under the new format specified under GST on or before 31st July 2017.