Filing of LUT in GST for Exporters: A Professional Guide

Are you an exporter seeking a hassle-free way to manage your GST compliance? Filing a Letter of Undertaking (LUT) is a crucial step that allows you to export goods and services without paying Integrated GST (IGST) at the time of supply. With Taxation Point India, exporters can simplify the LUT filing process, ensuring compliance, accuracy, and uninterrupted business operations.

What is LUT in GST?

The Letter of Undertaking (LUT), filed under GST using Form GST RFD-11, is an important compliance document for exporters. It enables exporters to supply goods or services internationally or to SEZ units without immediate tax payment. By filing an LUT, businesses avoid the need to first pay IGST and then claim refunds, thus saving valuable working capital.

GST LUT Form for Exporters

Every registered taxpayer engaged in exports of goods or services must file an LUT on the GST portal. The LUT is valid for one financial year, after which it must be renewed. Exporters who do not file an LUT are required to furnish a bond with a bank guarantee instead.

Eligibility Criteria for LUT Registration

• Registered taxpayer under GST.
• Engaged in export of goods or services, including SEZ supplies.
• No prosecution for tax evasion exceeding ₹250 lakh.
• Intend to supply goods or services without IGST payment.

Validity of LUT and Bonds

• Validity: An LUT is valid for one financial year and must be renewed annually.
• Bond Requirement: If LUT conditions are not met, exporters must submit a bond with a bank guarantee.
• When Bonds Apply: For ineligible exporters, zero-rated supply to SEZ units without IGST, or export without LUT approval.

Documents Required for LUT Filing

• Request letter on company letterhead.
• GST registration certificate.
• PAN card of the entity.
• KYC documents of the authorized signatory.
• GST RFD-11 application form.
• IEC (Import Export Code) certificate.
• Cancelled cheque of business bank account.
• Authorization letter for the authorized signatory.

Benefits of Filing LUT for Exporters

• Tax-Free Exports: Carry out export transactions without upfront IGST payment.
• Simplified Compliance: Avoid lengthy refund claims and follow-ups.
• Improved Cash Flow: Working capital remains available for business operations.
• Operational Efficiency: Validity of one year reduces repetitive compliance.
• Beneficial for SMEs: Especially useful for small and medium exporters managing limited funds.

Key Points to Remember about LUT Filing

• LUT is valid for one year and must be renewed annually.
• Submission must be made on the entity’s official letterhead.
• Ineligible taxpayers must provide a bond with a bank guarantee (up to 15% of bond value).
• Authorized signatories include directors, partners, or proprietors.
• LUT must be filed through Form GST RFD-11 on the GST portal.

Simplify LUT Filing with Taxation Point India

At Taxation Point India, we provide end-to-end assistance for LUT filing under GST. Our services include document preparation, online submission of Form GST RFD-11, compliance checks, and timely renewal reminders. By partnering with us, exporters can focus on expanding their global trade while we ensure compliance at every step.

Start your LUT filing process today with Taxation Point India and experience smooth, tax-free export operations.