GST LUT – File Letter of Undertaking (LUT) Online

What is the Letter of Undertaking (LUT) under GST?

Letter of undertaking is the document that the user provides declaring fulfillment of all requirements under GST. It is furnished in case of export undertaken without paying IGST. Also, according to the Notification No. 37 /2017 – Central Tax It is mandatory to furnish LUT to export goods or services or both without paying IGST. If the exporter fails to provide the LUT, then he has to pay IGST or provide an export bond. Earlier LUT could only be filed offline at the concerned GST office. But to further ease the process the Government has made the LUT filing online.

Eligibility Criteria to Apply for LUT?

All GST registered goods and service exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws.In such cases, where the exporter is not eligible to file LUT, they would have to furnish an export bond.

Documents required for filing Letter of Undertaking under GST

• LUT cover letter – request for acceptance – duly signed by an authorised person.

• An LUT can be submitted by anyone registered under GST, provided they have not been prosecuted for tax evasion exceeding Rs. 250 lakh, or for any other offence under the CGST Act, the IGST Act 2017, or any other prevailing statute.

• Copy of GST registration.

• Pan Card of the entity.

• KYC of authorised person/signatory.

• GST RFD 11 form.

• Copy of IEC code.

• Cancelled Cheque.

• Authorized letter.

Process of Filing LUT (Letter of Undertaking)

Filing of LUT has been made online through the GST Portal. You can follow the steps below to file LUT online:

1. Login to the GST Portal with valid credentials.

2. Go to the menu bar and select the ‘Service’ option. Under the ‘Service’ option go to ‘User Service’ option’ and select the Tab “Furnishing Letter of Undertaking”.

3. Now, Form GST RFD-11 is displayed.

4. Select the Financial Year for which period you want to furnish the LUT.

5. You can also upload LUT that belong to an earlier period by clicking on the choose file option and uploading the LUT file.

6. If you have already furnished LUT Offline, for the previous period, please attach the same here and continue to file your application.

7. If you’re filing LUT, please read and select all the three check boxes for accepting the conditions prescribed in Letter of Undertaking.

8. In name, address and occupation of the independent witnesses section, enter name and address of two witnesses.

9. In the Place field, enter the place where the form is filed.

10. Next step is to select the name of Primary Authorized signatory or other Authorized signatory who will sign the Application form.

11. You can click the PREVIEW button to preview the form.

12. You can click the SAVE button to save the form and retrieve later.

13. Click the SIGN AND FILE WITH DSC or SIGN AND FILE WITH EVC button.

14. Once signed and filed, Form cannot be edited. Kindly recheck at least once before signing and submitting.

Validity of LUT (Letter of Undertaking)

The LUT submitted is valid for the whole financial year in which it is submitted. You need to submit a new LUT for each financial year. If the goods for export are not exported within three months of the Date of Invoice issue, then the Exporter is liable to pay GST along with 18\\% interest within 15 days according to Section 50 (1). Also in case payment for services are not received within one year for which the LUT has been submitted, the exporter is liable to pay GST @ 18\\% within 15 days. Failing to do so will lead to withdrawal of the LUT facility and on subsequent payments, it can again be restored.