In terms of rule 96A of CGST Rule-2017 which was notified under Notification No. 16/2017 dated 07-07-2017, any registered person availing the option to supply goods or services for export without payment of IGST shall furnish, prior to export, a bond or a LUT in Form GST RFD-11.
The facility of export under LUT has been now extended to all registered persons who intend to supply goods or services for export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees.
Such LUT shall be valid for the whole financial year. Hence, there is a requirement to furnish new LUT every year. The validity of LUT availed for FY 2019-20 will expire on 31-03-2020. As Assessee is required to apply for LUT prior to making exports. Hence, LUT for FY 2020-21 should be applied online before 31st March 2020.
So, that new LUT for FY 2020-21 should be available before 01-04-2020 for doing exports on or after 01-04-2020.
For the Financial Year 2020-21 facility to upload the same has been enabled on GSTN portal.
Submission / Renewal of Letter of undertaking is a very simple and user friendly procedure. Its validity is from the date of filing to next 31st March.
Step by step Procedure for Submission of Letter of Undertaking
( Only PDF or JPEG file formats are allowed & .Maximum file size for upload is 2 MB).
A LUT shall be deemed to have been accepted as soon as an acknowledgment for the same, bearing the Application Reference Number (ARN), is generated online. (Circular No. 40/14/2018-GST) LUT is deemed to be accepted by GSTN. LUT approval is instant hence no need to wait for it.
It is not mandatory to export on LUT even if a registered person is having it. He may still opt both like some export with LUT and some with IGST payment.