LUT stands for Letter of Undertaking. The LUT is required to be submitted to GST department when an exporter exports goods or services or both with out payment of IGST. You can file LUT in form RFD 11 on GST portal. An LUT has to be filed before exporting goods or services. An LUT submitted is valid for that financial year only. In case whereo LUT is not submitted, the exporter has to pay IGST and he can claim it on export bond.
Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest @ 18% as specified under sub-section (1) of section 50 within a period of:
A bond or letter of undertaking (LUT) can also be given in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.
Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11. The LUT has to be submitted for each financial year. One LUT filing is sufficient complance of Rule 96A of CGST Rules 2017 for one financial year.
Herein below is the step by step process to file LUT:
You can Login to your account in GST Portal, on services section, go to user services and click furnish letter of undertaking (LUT).
Once you click furnish letter of undertaking, the system will you show you the financial year options to select. You can select the appropriate financil year to which you submit Letter of Undertaking and attach the Letter of Undertaking in the attachment section.
After selecting financial year and attacing LUT, fill the details of Name, address and occupation of the independent Witnesses.
After filling the details, select the authorised signatory and sign with DSC if required and submit with the department. Then the system will generate the ARN and the GST officer will verify the application and approves it.
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