GST LUT Filing

INR 2899 All Inclusive
 

Basic

  • GST LUT Form for Exporters.

Filing of LUT in GST for Exporters

 

Are you an exporter aiming to streamline your business operations? Filing a Letter of Undertaking (LUT) under GST is crucial for exporters who want to avoid paying Integrated Goods and Services Tax (IGST) at the time of export. At Allycon, we are dedicated to helping you complete the LUT filing process with ease, ensuring your export transactions are tax-free and efficient.

Understanding LUT in GST

A Letter of Undertaking (LUT) is a vital document under the GST regime that allows exporters to supply goods and services without paying IGST upfront. This facility enables exporters to focus on expanding their international business without immediate tax liabilities, making it a key tool for export-related transactions.

GST LUT Form for Exporters

For any registered taxpayer involved in the export of goods or services, it is mandatory to file an LUT using the GST RFD-11 form on the GST portal. By doing so, exporters can enjoy tax-free exports without the requirement to pay IGST at the point of supply.

Eligibility Criteria for LUT registration

To be eligible for LUT registration, the following criteria must be met:

  1. Registered Taxpayer: Any registered individual or business involved in exporting goods or services can file an LUT. However, those with a history of tax evasion involving more than Rs. 250 lakh are not eligible.
  2. Intent to Export: The applicant must intend to supply goods or services to foreign countries or Special Economic Zones (SEZs) within India.
  3. GST Registration: The exporter must be registered under the GST framework.
  4. Zero-rated Supply: The intention to supply goods without the imposition of integrated tax is necessary to qualify for the LUT filing.

Exploring the LUT Bond

The LUT in GST is valid for one financial year, requiring exporters to submit a fresh LUT for each subsequent year. If the terms of the LUT are not met within the specified time frame, the exporter will need to furnish bonds as an alternative.

For exports without IGST, bonds are needed in certain cases, including:

  • Zero-rated Supply to SEZ: Exporting to SEZs without paying IGST.
  • Goods Export: Shipping goods internationally without IGST.
  • Service Export: Providing services to foreign clients without the imposition of IGST.

Documents required for GST LUT registration

To successfully file an LUT under GST, exporters must submit the following documents:

  1. A request letter (LUT Cover Letter) signed by an authorized individual.
  2. Proof of GST registration.
  3. The entity’s PAN card.
  4. KYC documents of the authorized signatory.
  5. A copy of the GST RFD-11 form.
  6. Copy of the IEC Code (for exports).
  7. A canceled cheque from the associated bank account.
  8. A letter authorizing the signatory to submit the LUT.

Advantages of Filing LUT for Exporters

Filing an LUT offers several advantages for exporters, helping streamline processes and improve financial efficiency:

  1. Tax-Free Exports: The LUT allows exporters to carry out their transactions without paying tax upfront, eliminating the need to claim refunds later.
  2. Simplified Process: Exporters can avoid complex tax refund processes, reducing paperwork and saving time.
  3. Unblocked Working Capital: Exporters retain access to working capital that would otherwise be tied up in tax payments, benefiting especially small and medium enterprises (SMEs).
  4. Long-Term Validity: Once filed, the LUT remains valid for the entire financial year, minimizing the need for frequent renewals and allowing exporters to focus on core business activities.

Key Reminders about LUT Bond in GST

Here are some key reminders for exporters filing LUTs under GST:
  1. Validity Period: An LUT is valid for one year, starting from the date of submission.

  2. Conditional Acceptance: An LUT is subject to specific conditions. Failure to meet these conditions may result in revocation of the privileges, requiring the exporter to submit a bond instead.

  3. Bond Alternatives: Exporters who are ineligible for LUT can still file a bond on non-judicial stamp paper, often requiring a bank guarantee for the anticipated tax liability.

  4. Official Letterhead: The LUT must be filed on the registered entity’s official letterhead, signed by an authorized person.

  5. Prescribed Form: The GST RFD-11 form is required to file the LUT, and can be submitted by an authorized signatory such as a Managing Director, company secretary, or firm partner.

  6. Bank Guarantee Limit: The bank guarantee should not exceed 15% of the bond amount, though the jurisdictional GST Commissioner may waive this requirement in certain cases.

Why Choose Allycon for Your GST LUT Filing?

At Allycon, we simplify the LUT filing process for exporters, allowing you to focus on expanding your business globally. Our team of professionals is well-versed in GST regulations and ensures a smooth, accurate, and compliant submission of your GST RFD-11 form.

With Allycon by your side, you can experience a hassle-free LUT filing process that keeps your working capital intact and your export operations running smoothly. From document preparation to submission, we offer end-to-end support, ensuring that every step is handled with precision and efficiency.

Contact Allycon Today

Ready to simplify your GST LUT filing? Reach out to Allycon today and let us guide you through a smooth, compliant process that empowers your export ventures. Enjoy the benefits of tax-free exports without the complexities—partner with Allycon for all your GST needs.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.