GST LUT Filing


Ensure seamless export operations with our GST LUT filing service. Avoid IGST payments on exports by filing a Letter of Undertaking (LUT) with us.
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Secure your tax-free export status today with our hassle-free GST LUT filing.

GST LUT Filing

The procedure of filing a Letter of Undertaking (LUT) to the tax authorities in accordance with India's Goods and Services Tax (GST) system is known as GST LUT Filing. Exporters who want to export goods or services without paying integrated GST (IGST) file this paperwork.
By submitting a LUT, the exporter pledges to follow all GST laws and guidelines, guaranteeing that the exports are finished on schedule and don't require the exporter to pay IGST up front. By preventing tax payments and ensuing refunds, this yearly filing streamlines the export procedure.

GST LUT Form for Exporters

It is required of all registered taxpayers involved in the export of goods or services to submit a Letter of Undertaking (LUT) via the GST portal using Form GST RFD-11.
In order to enable exports without having to pay the Integrated Goods and Services Tax (IGST), this obligation is necessary.

Advantages of GST LUT Filing for Exporters

Tax-Free Export:

Exporters that choose the LUT certificate can proceed with their export activities without having to worry about paying taxes right away. In contrast, in the alternative scenario, taxes are paid and then claimed as refunds for exports that are classified as zero-rated.

Simplified Process:

Exporters can avoid the hassles of filing tax refund claims and following up with the tax authorities by using the LUT certificate. This results in significant time savings and ease of use.

Unblocked Working Capital:

Exporters can still access funds that would have otherwise been tied up as tax payments. For small and medium-sized businesses (SMEs) who are struggling with funding and working capital constraints, this is especially important.

Liberated Resources:

The LUT certificate consistently provides a benefit for regular exporters. The LUT is valid for the full fiscal year after it is filed. Because of its endurance, exporters can concentrate on their main business while minimising the requirement for repetitive filings.

Exporters can move more quickly and nimbly through the world of international trade by utilising the advantages of the LUT certificate.

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Eligibility Criteria for LUT Registration

The following are among the requirements for eligibility to receive a LUT certificate:

Exporters of products and services who are registered taxpayers are welcome to use the Letter of Undertaking (LUT). However, this option is not available to those who are being prosecuted for tax evasion of more than Rs. 250 lakh.

  • Intent to Supply:
    The applicant must plan to provide goods or services to Special Economic Zones (SEZs), other nations, or other locations inside India.
  • GST Registration:
    The organisation wishing to profit from a LUT must be registered under the GST system.
  • Tax-Free Supply:
    Application of LUT is contingent upon the aim to supply commodities free from integrated taxation.

Key Reminders about LUT Bond in GST

Conditional Acceptance

There are conditions attached to a LUT's admission. If these requirements are not met, privileges may be revoked. In certain circumstances, a bond might be required from an entity.

Alternative Bonding

Bonds can nevertheless be provided by entities that are not eligible to register as LUTs. This bond necessitates a bank guarantee and is typically issued on non-judicial stamp paper. The adhesive ought to compensate for the estimated tax obligation determined by the exporter's evaluation.

Official Letterhead

Letterhead from the registered entity is required for LUT submissions. The organisation on this letterhead intends to provide goods and/or services without integrating tax payment.

Prescribed Form

It is necessary to apply a LUT using the proper GST RFD-11 form. Authorised individuals, such as the MD, company secretary, or partners in a firm, may submit this form.

Flexible Filing

When it comes to a business, the owner or a partner in a partnership firm may submit the form.

Bank Guarantee Limit

At most 15% of the bond amount should be covered by the bank guarantee that goes with it. This requirement may be waived by the GST Commissioner with jurisdiction.

GST LUT Registration

Documents Required for GST LUT Registration

To apply for a Letter of Undertaking (LUT) under GST, you'll need the following documents:

  • LUT Cover Letter: A request letter signed by an authorized person.

  • Eligibility: Ensure you meet eligibility criteria (no serious tax evasion cases).

  • Copy of GST Registration: Proof of your GST registration.

  • PAN Card of Entity: Identification using PAN card.

  • KYC of Authorized Person: ID and address proof of authorized person.

  • GST RFD 11 Form: Application form for LUT.

  • Copy of IEC Code: If involved in exports.

  • Canceled Cheque: From your associated bank account.

  • Authorized Letter: Granting power to the authorized signatory.