Eligibility, Documents Required, Process of Filing of Letter of Undertaking (LUT) in GST
LUT under GST: What does that mean?
LUT for GST Letter of Undertaking is its full name and meaning. Under rule 96 A, it must be provided in the form GST RFD 11, in which the exporter certifies that they will comply with all applicable GST requirements when exporting without paying IGST.
Who is required to submit LUT using GST RFD-11?
All GST-registered exporters of goods and services must file a GST LUT. Exporters who have been charged with a crime or committed tax evasions totaling more than Rs 250 lakhs under the CGST Act, the Integrated Goods and Services Act of 2017, or any other applicable legislation are ineligible to submit a GST LUT. They would need to provide an export bond in these circumstances.
In this case, the government wanted to increase the export base by granting export subsidies.
Any registered person may submit an export bond or LUT in GST RFD 11 in accordance with the CGST Rules, 2017 without having to pay the integrated tax. They may apply for LUT if They are GST-registered and plan to provide goods or services to India, other countries, or SEZs. They want to sell goods without having to pay the incorporated tax.
Required Documents for LUT under GST
Any person registered under GST who has not been executed for tax evasion exceeding Rs. 250 lakh or for any other felony may submit a LUT.
Request for acceptance in LUT in a cover letter – properly executed by an authorised party
Copy of the entity’s PAN card for GST registration and KYC for the authorised person/signer
GST RFD11 form
IEC code
Cancelled Cheque
Authentication letter
Who is eligible to use a Letter of Undertaking (LUT)?
The Letter of Undertaking is available to every registered taxpayer who exports goods and services. Anyone who has faced legal action for tax evasion involving Rs. 250 lakh or more is ineligible.
These LUTs are only valid for a year, and exporters must provide a new LUT for each fiscal year. The rights will be removed and the exporter will be required to post bonds if the conditions outlined in the LUTs are not met within the allotted time frame.
If the export is made without the IGST being paid, other assesses must provide bonds. Bonds and LUTs can be applied to:
Zero-rated supplies without IGST payments to SEZ
Exporting products to a nation outside of India without paying IGST
Without paying IGST, it provides services to a client in a non-Indian nation.
Submission of a Letter of Undertaking (FORM GST RFD-11)
The following format is used to file the Form RFD-11:
GST Number, Registered Name, and Date of Furnishing
Date, place, and signature
Witness information
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For the quotation of the above or for any other query you may contact the author at 9899595719 or acakunalchhabra@gmail.com
Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.
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