Under the Goods and Services Tax (GST) regime in India, an LUT is a document that exporters file to export goods or services without paying taxes.
Registration Fee
₹999/-
- GST Portal
- Navigate to LUT Section
- Fill Out the Form
- Upload Supporting Documents
- Review and Submit
- Acknowledgment
- Verification and Approval
- Download Approved LUT
- Validity
- Submission to Customs
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About GST Letter Of Undertaking
A GST Letter of Undertaking (LUT) is a legal document issued by a registered taxpayer to the tax authorities, declaring their intention to export goods or services without paying Integrated Goods and Services Tax (IGST). By furnishing an LUT, exporters are exempted from paying IGST on their exports and can claim a refund of input tax credit. This document simplifies the export process, reduces compliance burden, and promotes ease of doing business for exporters. However, exporters must adhere to the conditions specified in the LUT and maintain proper documentation to ensure compliance with GST regulations.
Document required for GST LUT
- Name, Address, Occupation of two witnesses.
- KYC Documents (Documents establishing the identity and address of the applicant, such as Aadhar card, passport, voter ID, etc.)
- GST credentials for login
Procedures
GST Portal :
Log in to the GST portal using your credentials (User ID and Password).
Navigate to LUT Section :
After logging in, go to the ‘Services’ tab and select ‘User Services’. Under this section, select ‘Furnish Letter of Undertaking (LUT)’.
Fill Out the Form :
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Taxpayer’s name and address
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GSTIN
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Authorized signatory details
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Financial year for LUT
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Bank account information
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Declaration of compliance with Notification No. 37/2020- Central Tax
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Any other pertinent details
Upload Supporting Documents :
Attach necessary supporting documents, like previous year’s GST return (if applicable), and others specified by GST authorities.
Review and Submit :
Review form for accuracy, electronically sign, and submit.
Acknowledgment :
After submission, receive acknowledgment with Application Reference Number (ARN). Keep this number safe for future reference.
Verification and Approval :
GST department verifies details in LUT application. If correct, LUT is approved.
Download Approved LUT :
After approval, download the LUT from the GST portal.
File Other Relevant Forms (SPICE-AOA, SPICE-MOA, and AGILE-PRO):
Validity :
LUT is valid for a specific financial year; renew annually for ongoing export transactions.
Submission to Customs :
Submit approved LUT to customs for GST exemption on exports.
Frequently Asked Questions
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What is LUT?
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Why is LUT needed for exporters?
LUT allows exporters to ship goods and services without paying IGST on exports, which can later be claimed as a refund. It helps in making the export process smoother and cost-effective
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How do I apply for LUT under GST?
To apply for LUT, exporters must submit an online application via the GST portal, providing details of the business and previous compliance.
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What happens if I don’t file LUT for export?
If an exporter does not file an LUT, they will be required to pay IGST on exports, which can be claimed back later. However, it adds an additional financial burden and paperwork.
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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.
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What if the LUT is not furnished on time?
If the LUT is not filed on time the exporter is required to pay the tax while carrying out exports and then claim a refund to avail the benefit of the zero-rated exports.