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Filling LUT in GST

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📝 Filing of LUT in GST for Exporters – Simplify Your Export Process with IndiaFills

Are you an exporter aiming to streamline your business operations? The GST LUT Form is an essential document that helps you carry out export transactions without the need to pay Integrated Goods and Services Tax (IGST) at the time of supply. At IndiaFills, we simplify the GST LUT filing process to make your export journey more efficient and seamless.

What is LUT in GST?

LUT stands for Letter of Undertaking, a crucial document under the Goods and Services Tax (GST) framework. It allows exporters to engage in the export of goods and services without the obligation to pay IGST at the time of export.

📄 GST LUT Form for Exporters

For all GST-registered exporters, it is mandatory to file a Letter of Undertaking (LUT) through Form GST RFD-11 on the GST portal. This ensures that exporters can conduct their export transactions without paying IGST, which simplifies the entire export process.

🏷️ Eligibility Criteria for LUT Registration

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

  • Exporter Status: The entity must be registered under GST and actively engaged in exporting goods or services.
  • No Prosecution for Tax Evasion: The applicant should not be facing any legal prosecution for tax evasion exceeding ₹250 lakh.
  • Intent to Export: The applicant must intend to supply goods or services to foreign countries, SEZs, or within India under GST.
  • Zero-Tax Supply: The intent must be to supply goods and services without paying IGST.

🔒 Exploring the LUT Bond

An LUT is valid for one financial year. At the beginning of each new year, exporters must submit a fresh LUT. Failure to meet the LUT conditions will result in the revocation of the LUT privileges, requiring exporters to furnish a bond instead.

📝 When are LUT and Bonds Required?

LUTs and bonds apply in the following cases:

  • Zero-Rated Exports to SEZ: Exporting goods to SEZs without paying IGST.
  • Goods Export: Exporting goods outside India without paying IGST.
  • Service Export: Providing services to foreign clients without paying IGST.

📑 Documents Required for LUT Filing Under GST

To file an LUT, you will need the following documents:

  1. LUT Cover Letter: A request letter signed by the authorized person.
  2. Eligibility Proof: Confirmation that you meet the eligibility criteria.
  3. GST Registration Copy: Proof of your GST registration.
  4. PAN Card: Copy of the entity’s PAN card.
  5. KYC of Authorized Person: Proof of ID and address of the person signing the application.
  6. GST RFD-11 Form: The official LUT application form.
  7. IEC Code: If involved in exports.
  8. Cancelled Cheque: From your registered bank account.
  9. Authorized Signatory Letter: Letter granting authority to the signatory.

💡 Advantages of Filing LUT for Exporters

Filing an LUT brings numerous advantages that help exporters streamline their operations:

Tax-Free Exports

  • Exporters can conduct tax-free exports without paying IGST upfront. This eliminates the need for refund claims on zero-rated exports.

Simplified Process

  • By filing an LUT, exporters can avoid the complexities of claiming refunds or dealing with follow-ups with tax authorities, saving time and reducing operational friction.

Unblocked Working Capital

  • Avoid locking funds as tax payments, which is crucial for small and medium-sized enterprises (SMEs), allowing more cash flow for growth.

Long-Term Validity

  • Once filed, an LUT remains valid for the entire financial year, minimizing the need for repeated filings.

⚠️ Key Reminders About LUT Bonds in GST

Here are some key points to remember when dealing with LUTs and bonds under GST:

  • Validity Period: LUTs are valid for one year, and a new LUT must be submitted each year.
  • Conditional Acceptance: The LUT is accepted with conditions. If these conditions are not met, the exporter may need to provide a bond.
  • Bank Guarantee: For bond submission, a bank guarantee covering the tax liability is required, generally up to 15% of the bond amount. However, the GST Commissioner may waive this requirement.
  • Official Letterhead: The LUT must be submitted on the official letterhead of the exporting entity.
  • Filing Form: The LUT must be submitted via Form GST RFD-11 by an authorized person (e.g., Managing Director, partner, or proprietor).
  • Alternative Bonding: If the LUT registration is not available, exporters can submit a bond on non-judicial stamp paper, with a bank guarantee to cover the tax liability.

🔧 Simplify LUT Filing with IndiaFills

At IndiaFills, we specialize in simplifying the LUT filing process for exporters, helping you focus on expanding your export business without the burden of complex procedures. Our experts are well-versed in GST regulations and offer end-to-end support, from document preparation to online submission.

🚀 Unlock the Benefits of Tax-Free Exports

Let us help you navigate the GST LUT filing process smoothly, ensuring compliance while enabling you to reap the benefits of tax-free exports.

📞 Contact Us Today to start your hassle-free LUT filing journey with IndiaFills!

 

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