GST LUT Filings

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    What is LUT, when it is required by the company and what is the process? Let's understand in detail about all for better understanding. The full form of LUT is Letter of Undertaking. It is a document that exporters can file to export goods or services without having to pay taxes. Under the new GST regime, all exports are subject to IGST, which can later be reclaimed via a refund against the tax paid.
    What is GST LUT filing?

    LUT refers to the Letter of Undertaking under GST. The Letter of Undertaking (LUT) is a document that needs to be furnished in form GST RFD 11 under rule 96A, where the exporter declares that he/she would fulfill all the requirements while exporting without making IGST payment.

    It is mandatory that all registered taxpayers who export the goods or services have to furnish a Letter of Undertaking (LUT) in the GST RFD-11 form on the common portal of GSTN in order to make exports without payment of IGST.

    What are the features of GST LUT filing?

    • There is an eligibility criteria to apply LUT under GST. A person going to supply goods/services to or outside India places covered under the special economic zone, registered under GST and without paying integrated tax.

    • LUT is accepted by the Assistant or Deputy Commissioner having jurisdiction over the place where the exporter performs his business.

    What is the procedure of GST LUT Filing?

    1. Login to https://services.gst.gov.in/services/login.

    2. Click on the service tab and select the User services and select Furnish LUT.

    3. Now under “LUT applied for Financial Year” select the financial year in which you want to file your LUT.

    4. Fill in the details which are shown on the screen.

    5. Mention the name of witnesses for generating LUT with their occupation and address details of two independent witnesses.

    6. Enter place of filing LUT and then click on SAVE, when you save the document preview of your document will appear on the screen before final submission.

    7. The important step of the signing of a letter of undertaking takes place now, it can be signed by the exporter or any other authorized signatory.

    8. And finally, you will get an email notification and SMS to your registered mobile number.

    9. Now you can download your GST Letter of Undertaking.

    What are the documents required for GST LUT filing?

    • Self-declaration stating conditions of LUT.

    • Bank Guarantee 

    What are the advantages of GST LUT Filing?

    1. Transparency

    The process of export under GST LUT has now been rationalized and more transparent. Now from exporters to all stakeholders can easily have the updates of the filing process.

    1. Simple and Easy

    The process has been made very simple and easy to understand through the online portal.

    Required Documents

    Acceptable DocumentDocument TypeAdditional Details
    Self-declaration stating conditions of LUTdemo datademo data
    Bank Guarantee demo datademo data

    FAQs

    You Ask, We Answer

    In case the LUT application is not processed by within 3 working days, then the application will be deemed approved and the status of LUT application will be changed to “Deemed Approved”. When the application would be deemed approved after 3 working days, then an order copy will be generated through the GST Portal and order will be available for the taxpayer in the downloadable form. Alert will be sent to Tax Official on deemed approval along with intimation to the taxpayer.

    While performing foreign exchange service like currency exchange, money transfer abroad or buying a forex card, through a money changer or bank in India, the only tax to be paid is Goods & Services Tax (GST). 18% GST will be levied on the portion of the forex transaction which comes under “taxable value” bracket.

    The supplier can use input tax credit against any other domestic supplies. Further, on the top of the taxable invoice it should clearly be mentioned that 'SUPPLY MEANT FOR SEZ/SEZ DEVELOPER UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX'. LUT is prescribed to be furnished in form GST RFD 11.

    Kindly go through above mentioned process for filing of LUT.

    LUT is presented in the annexure to form GST RFD-11 and can be issued by the partner, MD, Company Secretary or by the person duly signed by the company or the proprietor.

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