GST LUT
Filing of LUT in GST for Exporters – Simplified by NR Filing
The Letter of Undertaking (LUT) is a formal declaration under the GST framework that allows exporters to undertake zero-rated supply of goods or services without paying IGST at the time of export. This instrument is essential for exporters to benefit from tax-free exports, eliminating the need for complex refund claims post-export.
Are you an exporter seeking to optimize your business operations and enhance cash flow? The GST Letter of Undertaking (LUT) is a pivotal document enabling exporters to conduct export transactions without the immediate payment of Integrated Goods and Services Tax (IGST). NR Filing is dedicated to facilitating a seamless and efficient LUT filing process, empowering your export business with greater ease and compliance assurance.
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All registered taxpayers engaged in exporting goods or services must file the LUT using Form GST RFD-11 on the official GST portal. This mandatory filing facilitates smooth export operations without the burden of IGST payment on supplies.
- The LUT is valid for one financial year and must be renewed annually.
- Failure to comply with LUT terms within the financial year may result in privilege revocation, necessitating submission of a bond.
- Bonds serve as a security instrument for exporters who either fail to file an LUT or are ineligible for the same.
- LUT and bonds apply to:
- Zero-rated supplies to SEZs without IGST payment
- Export of goods without IGST payment
- Export of services without IGST payment
Opting for an LUT certificate offers significant operational and financial benefits to exporters:
- Tax-Free Exports: Enables zero-rated supplies without upfront IGST payments.
- Simplified Compliance: Avoids the cumbersome refund claim process, reducing administrative overhead.
- Improved Working Capital: Retains funds that would otherwise be blocked as tax payments, critical for SMEs.
- Annual Validity: Valid for the entire financial year, minimizing repetitive filings and procedural delays.
Navigating GST LUT filing can be complex and time-consuming. NR Filing offers expert guidance and end-to-end assistance—from document preparation and verification to online submission—ensuring accuracy, compliance, and timely filing.
Our team of seasoned GST professionals simplifies your compliance journey, enabling you to focus on expanding your export business while we handle the procedural intricacies. Experience hassle-free LUT filing and unlock the benefits of seamless, tax-efficient exports with NR Filing.
The eligibility requirements to obtain an LUT certificate through NR Filing include:
- Registered Exporter: Any taxpayer registered under GST involved in export of goods or services.
- Clean Compliance Record: Exporters should not be facing prosecution for tax evasion exceeding ₹2.5 crore.
- Intent to Export: The exporter must intend to supply goods or services to foreign countries or Special Economic Zones (SEZs).
- GST Registration: The applicant must hold valid GST registration.
- Cover Letter on company letterhead, signed by an authorized representative
- GST Registration Certificate
- PAN Card of the exporting entity
- KYC documents of the authorized signatory (ID and address proof)
- GST RFD-11 Application Form
- Importer Exporter Code (IEC) copy (if applicable)
- Cancelled cheque of the bank account linked to GST registration
- Authorization letter for the signatory, if applicable
- Validity: LUT is effective for one year from the date of submission.
- Conditional Use: Non-compliance with LUT terms may lead to revocation, requiring a bond submission.
- Bond Requirements: For ineligible entities, bonds secured by bank guarantees (typically 15% of the bond amount) are mandated. However, GST Commissioners may waive this requirement.
- Authorized Submission: LUT must be filed on the registered entity’s letterhead by authorized personnel such as MDs, company secretaries, partners, or proprietors.
