The abbreviation LUT stands for Letter of Undertaking. The Letter of Undertaking is a document that the exporter submits
to be able to export goods or services without paying taxes. In the event that the LUT is not filed, the exporter may pay
the IGST and later obtain a refund of the tax paid. Because exporters do not want to deal with the difficulties of refunds
and cash being blocked, filing LUT is more convenient than refund mode.
Any registered person availing the option to supply goods or services for export /SEZs without payment of integrated tax has
to furnish, prior to export/SEZs supply. Example of transactions for which LUT can be used are:
- Zero rated supply to SEZ without payment of IGST.
- Export of goods to a country outside India without payment of IGST.
- Providing services to a client in a country outside India without payment of IGST
How can I file LUT?
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.
Steps to furnish LUT on the GST portal
- Step 1: Login to GST Portal.
- Step 2: Go to ‘SERVICES’ Tab > ‘User Services’ > Select ‘Furnish Letter of Undertaking (LUT)’
- Step 3: Select the financial year for which Letter of Undertaking is applied for from the ‘LUT Applied for Financial Year’ drop-down list. Eg: 2021-22.
- Step 4: Fill up the necessary details on the Letter of Undertaking Form/ GST RFD-11
- Step 5:Enter the Place of filing > Click on ‘SAVE’ > click on ‘PREVIEW’ to verify the correctness of the form before submission Note that currently, the revision of a signed/submitted form is not possible.
- Step 6: Sign and file the form using either DSC or EVC
How would I know that the process of furnishing LUT has been completed?
After successful filing, system will generate ARN and acknowledgement. You will be informed about successful filing via SMS and Email and you can also download the acknowledgement as PDF
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.
Is it mandatory to file GST LUT?
It is mandatory to furnish the Letter of undertaking (LUT) to export the goods, services, or both without paying the IGST.
What happens when the exporter fails to furnish the LUT?
In case if the exporter fails to provide the LUT then he has to pay the IGST or furnish an export bond.
What documents are required for GST LUT filing?
LUT cover letter- duly signed by an authorized person Copy of the GST registration PAN of the entity.
Why SIMBLE BOOKS for Filing LUT under GST?
Filing LUT under GST takes around 1 to 3 working days subject to the availability of the government portal and the submission of documents by the client.
