Know everything about Letter of undertaking (LUT )under GST.
What is Letter of Undertaking (LUT)?
Letter of undertaking (LUT) under GST is the self-declaring document which the exporter has to compulsory file with the authorities in the prescribed format of RFD-11, thereby declaring that all the GST requirements are fulfilled while export is made without making payment of IGST.
Who has to file Letter of Undertaking (LUT)?
Any entity registered under GST regime exporting goods or services without payment of integrated tax viz. IGST has to furnish a Letter of Undertaking (LUT), before actual supply is in place. Transactions for which LUT can be used are:
- Zero rated supply of goods/services to SEZ without payment of IGST.
- Export of goods/services abroad without payment of IGST.
Read other blog: Impact of GST on Export of Goods and Services
How to apply for LUT?
All registered taxpayers who have a zero-rated supply of goods & services in their basket, must apply for LUT in the prescribed format as specified in GST RFD-11 on the GST portal before giving effect to such transaction in the first place. Follow the steps to apply for LUT in GST RFD-11 format:
- Go to GST web portal [https://www.gst.gov.in/]
- Log in using your username & password.
- Go to services & then click on “User services” tab > Click on “Furnish Letter of undertaking”.
- To apply for LUT, you must select the financial year from the drop-down list in which you are applying for LUT Online.
- Mention the details of the witnesses: Name, occupation & permanent address of two independent witnesses must be declared to complete the letter of undertaking- LUT Online form.
- Preview your Letter of Undertaking- LUT Online: After entering the place of filing your LUT Online, “save” the document. After saving your document you can preview the uploaded documents before final submission.
- Sign Letter of Undertaking- LUT Online: Exporter or any authorised signatory viz. MD, Company secretary, proprietor or any other person authorised by them can sign letter of undertaking.
- Confirmation for Letter of undertaking: A confirmation notification will be send your registered Email ID & Contact number.
- Download the Letter of Undertaking: Now you can download the acknowledgement of your Letter of Undertaking- LUT Online by clicking “Download” button.
Read more blogs: Reconciliation of Goods & Services Tax (GST) data
[Note: IfLetter of Undertaking (LUT) is already issued for any previous periods, then on must upload the same in the same window, in the prescribed format viz. PDF/JPEG and must not exceed size of 2 MB]
What is the validity of Letter of undertaking (LUT)?
Once you apply for LUT online and the verification process is complete, it is valid for the whole financial year in which it is submitted. It requires submission of a new LUT for every subsequent year.