GST LUT FORM

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GST LUT Form in India

At Bharat eFiling Point, we provide detailed guidance and assistance for filing the GST LUT (Letter of Undertaking) Form in India. The GST LUT is a crucial document for exporters who want to export goods or services without paying Integrated Goods and Services Tax (IGST) under the GST regime. Filing a LUT allows exporters to benefit from zero-rated supply of goods or services, enhancing their cash flow and competitiveness in the international market.

What is GST LUT?
GST LUT is a legal undertaking submitted by exporters to the government stating their commitment to comply with all export-related regulations and not to claim any refund of IGST paid on exports. Once the LUT is approved, exporters can ship goods or services without the burden of upfront tax payment, which can later be claimed as a refund.

Key Points about GST LUT Form:

  • Eligibility: Any registered person making zero-rated supplies (exports) can apply for LUT.

  • Validity: The LUT is valid for one financial year and needs to be renewed annually.

  • Application Process: Exporters can file the LUT online on the GST portal before exporting goods or services.

  • No Deposit Required: Filing LUT does not require any security deposit, unlike the Bond.

  • Types of Exports Covered: LUT applies to both goods and services exported outside India.

  • No Tax Payment: Exporters don’t need to pay IGST on exports if LUT is filed.

  • Compliance: Exporters must file relevant GST returns and maintain export documentation for audit and verification.

Advantages of Filing GST LUT:

  • Improved Cash Flow: Avoidance of upfront IGST payment on exports reduces working capital requirements.

  • Simplified Process: Filing LUT is simpler and quicker compared to filing a Bond, with no financial deposit needed.

  • Zero-Rated Supply Benefits: LUT ensures exporters benefit from GST zero-rated supply provisions legally and smoothly.

  • Legal Protection: Provides a formal legal undertaking recognized by tax authorities, reducing disputes and compliance risks.

  • Competitive Edge: Enables exporters to price their products competitively in the global market by reducing tax-related costs.

  • Faster Clearance: Export consignments with LUT are processed faster due to exemption from IGST payment at customs.

How Bharat eFiling Point Helps:
At Bharat eFiling Point, we offer expert assistance to help you understand the requirements and guide you through the complete process of GST LUT filing. Our experienced professionals ensure timely submission, compliance with GST laws, and smooth export operations. We provide personalized support to exporters to maximize their benefits under the GST framework.

Key points of GST Registration, GST Returns, GST Amendment, GST Revocation& GST LUT Form

TERM PURPOSE WHO NEEDS IT FREQUENCY/VALIDITY
GST REGISTRATION To legally register for GST and get GSTIN Businesses crossing threshold One-time (unless changes)
GST RETURNS To report sales, purchases, and tax payments Registered taxpayers Monthly/Quarterly/Annual
GST AMENDMENT To update or correct GST registration info Registered taxpayers As needed
GST REVOCATION To cancel or reinstate GST registration Registered taxpayers As needed
GST LUT FORM To export without paying IGST Exporters Annual renewal

Documents Required for GST LUT Form in India

The Letter of Undertaking (LUT) under GST is a document that enables exporters to conduct export transactions without paying Integrated Goods and Services Tax (IGST). The LUT form is known as FORM GST RFD-11, which is submitted on the common portal. The LUT is deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online.For first-time filing of LUT, there is no requirement to upload any documents online. However, if a notice for submission of hard copies of documents is received, then the applicant must submit the required documents along with all attachments to the jurisdictional office.The documents required for submission of LUT through the online mode include the following:

  • Detail of witnesses along with their identity and address proofs
  • Consent letter of witnesses for such LUT
  • Acceptance letter from the department acknowledging the LUT of any previous year

It is advisable to create a proper file with all documents as required in the manual mode of submission of LUT, even though there is no document required to be submitted manually to the department.For manual application for Letter of Undertaking (LUT), the following documents are required:

  • Cover letter requesting acceptance of LUT
  • A copy of GST Registration Certificate
  • Form GST-RFD-11 in duplicate
  • Original Two Sets of Annexure of Letter of Undertaking (LUT) on Letter Head of the entity
  • Signatures of all undertakers should be verified by the Bank Manager
  • Two witnesses

It is important to note that the LUT is open for utilization by any registered taxpayer engaged in exporting goods and services, except for individuals facing prosecution for tax evasion exceeding Rs. 250 lakh or more. The LUT has a validity of one year, and a fresh LUT must be submitted for each subsequent financial year. If the terms outlined in the LUT are not met within the designated timeframe, the privileges associated with it will be withdrawn, prompting the need for the exporter to provide bonds.Invoices, e-way bills, GST certificate, and copy of LUT are required at the time of dispatch of material. The authorised signatory must be an Indian even in the case of foreign companies/branch registration. The bank account details include a copy of a cancelled cheque or extract of passbook/bank statement (containing the first and last page) in JPEG format/PDF format, with a maximum size of 100 KB. Address proof includes Upload any one of the following documents:

  • Aadhaar card
  • Driving license
  • Voter ID card
  • Passport
  • Electricity bill
  • Telephone bill
  • Property tax receipt
  • Rent agreement
  • Lease agreement

All documents must be in JPEG format with a maximum size of 100 KB.

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GST LUT Form FAQ’s

What ought to be documented in the letter of undertaking?

GSTIN and Name (Lawful Name) of the Citizen will be prefilled in light of login. The Citizen needs to choose the monetary year for which LUT is being documented, enter the name, address, and occupation subtleties of two autonomous and solid observers. 

Is it obligatory to record them physically supported LUT in web-based records?

It isn’t compulsory, however to record the physically endorsed LUT to be accessible in web-based records, he can outfit it with the internet based application. 

Who needs to sign the LUT application?

Essential approved signatory/Some other Approved Signatory needs to sign and document the confirmation with DSC/EVC. The approved signatory can be the functioning accomplice, the overseeing chief, or the owner or by an individual properly approved by such working accomplice or Directorate of such organization or owner to execute the structure. 

How might I realize that the most common way of outfitting the LUT has been finished?

After effective recording, the framework will produce ARN and affirmation. You will be educated about effective recording by means of SMS and Email, and you can likewise download the affirmation as a PDF. 

Is it conceivable to see the LUT application in the wake of documenting?

Indeed, the Citizen will actually want to see his LUT subsequent to recording. 

Is it obligatory to document GST LUT?

It is compulsory to outfit the Letter of undertaking (LUT) to send out the merchandise, administrations, or both without paying the IGST. 

What happens when the exporter neglects to outfit the LUT?

On the off chance that in the event that the exporter neglects to give the LUT, he needs to pay the IGST or outfit a product bond. 

Who is qualified to outfit LUT under GST?

Any individual who is sending out labor and products can outfit the LUT. 

Who isn't qualified to outfit under GST?

An individual who has been indicted for dodging duty of Rs. 2.5 crore or above under the demonstration can’t outfit the LUT. 

What archives are expected for GST LUT documenting?

LUT introductory letter-properly endorsed by an approved individual Duplicate of the GST enlistment Dish of the substance. 

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Why GST LUT Form in India is Important

The GST LUT (Letter of Undertaking) Form plays a vital role in facilitating smooth and cost-effective exports from India under the Goods and Services Tax (GST) regime. Its importance stems from the following key reasons:

  1. Enables Zero-Rated Exports: GST LUT allows exporters to supply goods or services outside India without paying Integrated Goods and Services Tax (IGST). This zero-rated supply status helps exporters avoid upfront tax payments on exports, which significantly improves their cash flow.

  2. Reduces Financial Burden: Without LUT, exporters are required to pay IGST on exports and then claim a refund later, which can delay working capital and cash availability. Filing LUT eliminates this immediate tax outflow, easing financial pressure.

  3. Simplifies Export Compliance: LUT acts as a legal undertaking assuring the government that exporters will comply with export regulations. This reduces the need for exporters to submit a security deposit or bond, making the export process simpler and faster.

  4. Speeds Up Export Process: Customs authorities expedite clearance of shipments when exporters have a valid LUT, as there is no need to verify IGST payments on export consignments. This leads to timely delivery and better customer satisfaction.

  5. Avoids Interest and Penalties: By filing LUT, exporters protect themselves from interest and penalties that could arise if IGST is not paid correctly or on time. It ensures compliance and reduces risks related to tax disputes.

  6. Encourages Global Competitiveness: Exporters can price their products competitively in international markets since GST is effectively exempted on exports under LUT. This boosts India’s export sector and contributes to economic growth.

  7. Mandatory for Exporters: Exporters of goods and services who wish to export without payment of IGST must file LUT or furnish a Bond if LUT is not filed. Hence, it is a necessary step for smooth export operations under GST.

GST LUT Form is essential for exporters in India to benefit from tax exemptions, improve cash flow, simplify compliance, and maintain competitive advantage in the global marketplace. It acts as a critical document that enables hassle-free and cost-efficient exports under the GST system.

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