Letter of Undertaking under GST

File the Letter of Undertaking that guarantees tax savings before the exports.

Letter of Undertaking under GST

What is Letter of Undertaking?

Letter of Undertaking is abbreviated as LUT. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid. Filing LUT is convenient than refund mode as the exporters do not wish to indulge into hassles of refunds and block their funds. The eligibility criteria to apply for LUT is comparatively relaxed than to the erstwhile system.

Letter of Undertaking is filed online using the form GST RFD 11. By filing LUT, the exporter undertakes that all the requirements prescribed for this route will be fulfilled by him.

Benefits of filing LUT under GST

Exports without tax payment

By filing LUT under GST, an exporter can export goods or services without paying the taxes. If LUT is not filed, the exporter must first pay the required tax while making exports and then claim a refund to avail benefit of zero-rated exports.

Saves Working Capital

The regular exporters are at a huge benefit by filing LUT online as the refund process under another route is a time-consuming process. During which the bunch of capital is blocked in the form of a due refund. With this mode, the capital is free to be utilized for other necessary requirements. It also reduces the cost of exports.

An Entire Financial Year Validity

The Letter of Undertaking, once filed is valid for the whole financial year in which it is filed. Hence, unlike refund process, an exporter does not need to go through the procedural requirements every time an export consignment is carried out.

Simple and online process

The filing of LUT and its acceptance, both are made online since April, 2018. The applicant does not need to visit the officers for acceptance. The whole process can be completed online by submitting a few required documents.

Documents required for LUT filing

Entity’s PAN Card

A Copy of PAN card of the exporter entity

KYC of Authorised Signatory

A Copy of PAN card and Aadhar card of partners/directors

Witnesses

Information of at least two witnesses along with the address proof and PAN

GST Registration

GST Registration Certificate of the exporter is required

IEC Certificate

The IEC certificate must be submitted

Cancelled cheque

A Copy of cancelled cheque of current account of exporter

Need assistance? Don’t worry, experts are here to help!
Call us at: 1800 313 4151 or Email us: support@legalwiz.in

File LUT in 3 easy steps

1. Answer Quick Questions

It takes less than 5 minutes to fill in our Questionnaire
Provide basic details & documents required
Make payment through secured payment gateways

2. Experts are Here to Help

Assigned Relationship Manager
Preparation for the Letter of Undertaking
Filing the of Letter of Undertaking
Letter of Acceptance

3. Letter of Undertaking is filed

All it takes is 3 – 5 working days*

*Subject to Government Processing Time

Process of filing LUT under GST

Day 1 - Collection

Discussion and collection of basic Information
Collection of required documents

Day 3-4 - Execution

Preparation for the Letter of Undertaking
Online Submission of LUT

Day 5 - Acknowledgement

Sharing Acknowledgment bearing ARN

Explore Letter of Undertaking under GST

Frequently Asked Questions

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How goods or services can be exported from India?

Exports of goods and services are done either with the payment of applicable GST or without the payment of GST. In the first portion, the taxes paid are refunded to exporters subject to conditions of exports. For exports without payment of taxes, the exporters are required to file Letter of Undertaking.

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When is the Letter of Undertaking required to be filed?

If the exporters wish to opt for exports without the payment of taxes, the Letter of Undertaking is required to be filed. First time filing can be made any time before exporting without taxes. However, if the exporter wants to continue the same to the next financial year, it must be filed before the commencement of the financial year.

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