GST LUT FILING

Whenever goods or services are supplied from India to outside India then, it is acknowledged as export of goods. In goods and services tax law, exporters has two options for export of goods and services-

With the payment of applicable GST- In this exporters pay IGST and then claim the refund of tax paid.

Without the payment of GST- In this exporters are required to file Letter of Undertaking.

Letter of undertaking (LUT) is the document that the user provides declaring that all requirements under GST are fulfilled. Letter of Undertaking is filed online using the form GST RFD 11. 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.

Filing of Letter of undertaking(LUT) is convenient than refund mode because of the following benefits-

Exporters do not wish to indulge into hassles of refunds

Exports without tax payment

Saves Working Capital

Once filed is valid for the whole financial year

Simple and online process

Documents required for filling of Letter of undertaking-

A Copy of PAN card of the exporter entity,

KYC documents of authorised signatory i.e. copy of PAN card and aadhar card of partners/directors,

GST Registration Certificate of the exporter entity,

The import exportCode certificate (IEC certificate) must be submitted,

A Copy of cancelled cheque of current account of exporter entity,

Such other documents as may prescribed.