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Filing of LUT in GST for Exporters

Explore all the details you need about Filing of LUT in GST for Exporters, tailored for your needs.

Are you an exporter looking to simplify your business operations? The GST LUT Form is an essential document that enables you to seamlessly conduct your export transactions without paying Integrated Goods and Services Tax (IGST) at the time of supply. Solocorp is here to assist you in efficiently completing the GST LUT Form filing process, making your export journey smoother than ever.

Understanding LUT in GST

LUT full form is Letter of Undertaking holds significant relevance within the context of the Goods and Services Tax (GST) framework. This document serves as a powerful tool for exporters, allowing them to engage in the export of goods or services without the obligation of immediate tax payment.

GST LUT Form for Exporters

For all registered taxpayers engaged in the export of goods or services, it is mandatory to provide a Letter of Undertaking (LUT) using the Form GST RFD-11 form on the GST portal. This obligation is essential to facilitate exports without paying Integrated Goods and Services Tax (IGST).

Eligibility Criteria for LUT Registration

The eligibility criteria for obtaining a Letter of Undertaking (LUT) certificate are as follows:

Registered Taxpayer

The LUT is available for any registered taxpayer engaged in exporting goods and services. However, individuals facing prosecution for tax evasion exceeding Rs. 250 lakh are not eligible.

Intent to Supply

The applicant must intend to supply goods or services either within India, to foreign countries, or to Special Economic Zones (SEZs).

GST Registration

The entity must be registered under the GST framework to avail the benefits of an LUT.

Tax-Free Supply

The applicant must intend to supply goods without the imposition of integrated tax.

Exploring the LUT Bond

The Letter of Undertaking (LUT) in GST is valid for one year, requiring the submission of a fresh LUT for each subsequent financial year.
If the conditions outlined in the LUT are not met within the specified period, the associated privileges will be revoked, and the exporter will need to provide bonds.
Bonds are necessary in the following cases:
- Zero-rated supply to SEZ: Exporting to Special Economic Zones (SEZs) without Integrated Goods and Services Tax (IGST) payment.
- Goods Export: Exporting goods to a foreign country without IGST payment.
- Service Export: Providing services to clients in foreign countries without IGST payment.

Documents Required for GST LUT Registration

To apply for a Letter of Undertaking (LUT) under GST, you need to submit the following documents:

LUT Cover Letter

Eligibility Proof

Copy of GST Registration

PAN Card of Entity

KYC of Authorized Person

GST RFD 11 Form

Copy of IEC Code

Canceled Cheque

Authorized Letter

Advantages of Filing LUT for Exporters

Tax-Free Export

Filing for LUT enables exporters to carry out their export transactions without the immediate burden of tax payment, unlike paying taxes upfront and claiming refunds later for zero-rated exports.

Simplified Process

The LUT certificate eliminates the need for complex tax refund processes or follow-ups with tax authorities, saving time and reducing operational hassles.

Unblocked Working Capital

Funds that would otherwise be held up as tax payments remain accessible to exporters, which is especially beneficial for SMEs facing financial constraints.

Liberated Resources

Once the LUT is filed, it remains valid for the entire financial year, reducing the need for repetitive filings and allowing exporters to focus on core business activities.

Key Reminders about LUT Bond in GST

Validity Period: An LUT remains valid for a year, starting from the submission date, and needs to be renewed for subsequent years.
Conditional Acceptance: The acceptance of an LUT comes with specific terms. Failing to meet these conditions may lead to the revocation of privileges, and a bond may be required.
Alternative Bonding: Entities ineligible for LUT registration can still provide a bond. This bond, typically on non-judicial stamp paper, requires a bank guarantee covering the expected tax liability.
Official Letterhead: LUT submissions must be made on the registered entity's official letterhead, indicating the intention to supply goods/services without integrated tax payment.
Prescribed Form: LUT must be applied through the official GST RFD-11 form, submitted by authorized personnel such as the MD, company secretary, or partners in a firm.
Flexible Filing: In a company, the form can be submitted by a partner in a partnership firm or the proprietor.
Bank Guarantee Limit: The bank guarantee should be a maximum of 15% of the bond amount, with the jurisdictional GST Commissioner having the authority to waive this requirement.

Simplify LUT Form Filing with Solocorp

Navigating the complexities of LUT (Letter of Undertaking) filing for exporters has always been challenging. At Solocorp, we specialize in streamlining the process, allowing you to focus on expanding your export operations.

Our experienced professionals understand the nuances of GST regulations and are well-equipped to guide you through the seamless submission of the GST RFD-11 form. We offer end-to-end support, from document preparation to online submission, ensuring accuracy and compliance at every step.

With Solocorp by your side, you can unlock the benefits of tax-free exports without the hassle of navigating complex procedures. Simplify your filing of LUT in GST today and begin a smoother export journey with us.