GST LUT Form

Government Issued Documents

Documents Required

File Letter of Undertaking (LUT) in GST

GST RFD-11 Form, Eligibility & Process to fill the Documents

What does LUT under GST means?

LUT in GST: Full form/meaning is Letter of Undertaking. It is prescribed to be furnished in the form GST RFD 11 under rule 96 A, whereby the exporter declares that he or she will fulfill all the requirement that is prescribed under GST while exporting without making IGST payment.

Who needs to file LUT in Form GST RFD-11?

GST LUT is to be submitted by all GST registered goods and service exporters. The exporters who have been prosecuted for any offense and the tax evasions exceeding Rs 250 lakhs under CGST Act or the Integrated Goods and Service Act, 2017 or any existing laws are not eligible to file the GST LUT. In such cases, they would have to furnish an Export bond.

Here the motive of the government was to expand the export base by providing reliefs on exports. GST experts from DigiHunter can help you with GST LUT filing or Export bond Filing.

Under CGST Rules,2017, any registered person can furnish an Export bond or LUT in GST RFD 11 without paying the integrated tax. They can apply for LUT if:

They intend to supply goods or services to India or overseas or SEZs
Are registered under GST
They wish to supply goods without paying the integrated tax.

Process for Filing LUT in GST?

To file a Letter of Undertaking (LUT) in a case where the exports are made without payment of taxes, below are the steps on how to file and furnish bonds when the exports are made without payment of taxes.

Check the furnishing and jurisdiction requirements. If a bond is to be filed, additional documents relating to the bank guarantee must be prepared.

Prepare necessary documents for Bonds. Following documents are to be filed for bonds:

For Bonds:

Form RFD-11
Bond on stamp paper
Bank guarantee
Authority letter
Other supporting documents

A separate bond is not needed to be furnished for each consignment. Instead, he can furnish a running bond. A running bond helps the exporter to carry forward the same terms and conditions in the bond for the next consignment.

A duplicate copy should be prepared along with an official document.

The next step is to submit the documents to the department and get the same verified by a relevant officer to avoid any rejection

After filing the document, a signed letter shall be issued by the officer acknowledging the same.

Who can use Letter of Undertaking (LUT)?

Any registered taxpayer who is into exporting goods and services can make use of Letter of Undertaking. Any person who has been prosecuted for tax evasion for an amount of Rs. 250 lakh or above are ineligible.

The validity of such LUT’s is for one year, and an exporter is required to furnish a fresh LUT for each financial year. If the conditions mentioned in the LUTs are not satisfied within the specified time limit, then the privileges will be revoked, and the exporter will have to furnish bonds.

Other assesses should furnish bonds if the export is being made without the payment of IGST. LUTs / Bonds can be used for:

Zero-rated supply to SEZ without payment of IGST
Export of goods to a country outside India without the payment of IGST.
It is providing services to a client in a country outside India without paying IGST.

Filing of Letter of Undertaking (FORM GST RFD-11)

The Form RFD-11 is filed in the format below:

Registered Name
Address
GST No.
Date of furnishing
Signature, date, and place
Details of witnesses (Name, address, and occupation)

FAQ's

1. What should be filed in the letter of undertaking?

GSTIN and Name (Legal Name) of the Taxpayer will be prefilled based on login. The Taxpayer needs to select the financial year for which LUT is being filed, enter the name, address, and occupation details of two independent and reliable witnesses.

2. Is it mandatory to record them manually approved LUT in online records?

It is not mandatory, but if the Taxpayer wants to record the manually approved LUT to be available in online records, he can furnish it with the online application.

3. Who has to sign the LUT application?

Primary authorized signatory/Any other Authorized Signatory needs to sign and file the verification with DSC/EVC. The authorized signatory can be the working partner, the managing director, or the proprietor or by a person duly authorized by such operating partner or Board of Directors of such company or proprietor to execute the form.

4. How would I know that the process of furnishing the LUT has been completed?

After successful filing, the system will generate ARN and acknowledgment. You will be informed about successful filing via SMS and Email, and you can also download the acknowledgment as a PDF.

5. Is it possible to view the LUT application after filing?

Yes, the Taxpayer will be able to see his LUT after filing.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.