LUT in GST

Eligibility for GST LUT Filing

Who is eligible to utilise a Letter of Undertaking (LUT)?

A Letter of Undertaking can be used by any registered taxpayer who exports goods and services. Anyone who has been charged with tax evasion for a sum of Rs. 250 lakh or more is disqualified.

Such LUTs are valid for one year, and an exporter is obliged to provide a new LUT for each fiscal year. If the criteria outlined in the LUTs are not met within the time frame provided, the rights will be withdrawn, and the exporter will be required to provide bonds.

Other assessors must provide bonds if the export is performed without the payment of IGST. LUTs and Bonds can be used for a variety of purposes, including:

• Zero-rated supply to SEZs without IGST payment
• Exporting products to a nation other than India without paying IGST.
• It is not paying IGST since it is delivering services to a client in a nation other than India.

Submission of a Letter of Undertaking (FORM GST RFD-11)

The Form RFD-11 is filed in the following format:

• The registered name is
• Address
• No. of GST
• Date of delivery
• Signature, date, and location
• Witness information (Name, address, and occupation)

GST Documents Required for LUT

An LUT can be submitted by any individual who is registered under GST as long as he has not been executed for tax evasion of more than Rs.250 lakh or any other violation.

• LUT cover letter - acceptance request - properly signed by an authorised individual
• A copy of the entity's GST registration PAN card
• The authorised person's/KYC signatory's
• Form RFD11 for GST
• IEC code reproduction
• Cheque Cancelled
• Authorization letter

What is the procedure for filing a LUT under GST?

The processes for filing a Letter of Undertaking (LUT) when exports are done without payment of taxes are outlined below.

1. Examine the provisioning and jurisdiction needs. Additional papers pertaining to the bank guarantee must be prepared if a bond is to be submitted.
2. Prepare the required Bond papers. Bonds must be accompanied by the following documents:

   In the case of bonds:

   • RFD-11 is a form that you may fill out.
   • Stamp paper as a bond
   • Guarantee from a bank
   • Letter of authority
   • Other supplementary materials

It is not necessary to provide a separate bond for each consignment. He can instead provide a running bond. A running bond allows the exporter to carry on the bond's terms and conditions for the following consignment.

3. Along with an official document, a duplicate copy should be created.
4. To prevent rejection, the next step is to submit the papers to the department and have them checked by an appropriate official.
5. Following the filing of the document, the officer must issue a signed letter of acknowledgement.