GST LUT filing. Easy guide FY 21-22 & Onwards

GST LUT filing is relevant for exporters. The details as to what is LUT, who can utilize LUT, when to apply, steps of applying are mentioned in brief in the article below.

Table of Contents

What is Letter of Undertaking (LUT) under GST or GST LUT filing?

LUT is a declaration wherein exporter confirms he or she has met all the requirements prescribed under GST. The LUT has to obtained by exporter who is making supply without payment of tax (IGST). The supply can either be of goods or of services or both. In case exporter does not obtains LUT then he/she has to pay IGST. The LUT can be filled online in FORM GST RFD – 11 referred to in sub-rule (1) of rule 96A of the CGST Act, 2017.

The LUT is also required to be filed in case of zero rate supplies of goods or services or both made by registered person, who can also be SEZ, to SEZ without payment of tax (IGST).

Who can utilize Letters of Undertaking (LUT) and Bonds?

LUTs can be used by all registered persons who intends to supply goods or services or both outside India without payment of tax. However, a person who have been prosecuted for any offence under CGST or IGST or any other

Existing Law and amount of tax evasion exceeds INR 250 Lakhs i.e., 2.50 crores. The LUTs have a validity of a year and an exporter needs to submit LUT every year.

If the LUT conditions are not met within the timeframe, the privileges are removed, and the exporter is required to post bonds. In case where export is made without payment of IGST, bonds should be provided to all other assesses (together with those who have been prosecuted for tax evasion of INR 250 Lakhs or more under the GST legislation).

Letters of the undertaking can be provided and submitted online via the GST portal However, bonds are to be filled manually and a hard copy should be submitted to the department.

LUT/Bonds can be used in the following transactions:

Zero rate supplies of goods or services or both made by registered person, who can also be SEZ, to SEZ without payment of tax (IGST)
Supply of Goods outside India without payment of tax.
Supply of Services outside India without payment of tax.

When should you apply for/file a LUT?

The LUT can be filled online in FORM GST RFD – 11 referred to in sub-rule (1) of rule 96A of the CGST Act, 2017.

The LUT should be filed online before supply of goods or services or both as export.

Steps for GST LUT filing on online portal

Step 1: Visit GST portal and update Log In ID and password. For portal link refer >> https://www.gst.gov.in/
Step 2: From Services tab, go to user services and select furnish LUT
Step 3: Select relevant financial year for which LUT is submitted
Step 4: Fill in the information displayed in form GST RFD-11
Step 5: Select a file location, click on save and then preview to check the form accuracy and completeness
Step 6: Sign and submit the form using one either by using Digital Signature Certificate(DSC) or Electronic Verification Code(EVC) which will be received on registered email and mobile number