1. 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.
2. The facility of export under LUT has been 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.
3. The Government vide Union Budget 2021 proposed that, refund of GST paid on export of goods and/or services (i.e. rebate) will be restricted to notified taxpayers or goods/ services.
3.1 Due to this change, many businesses which were earlier claiming rebate on payment of tax for export supplies will now have to resort to exports without payment of tax under Bond or Letter of Undertaking and then subsequently, claim a refund of unutilised input credits.
4. The new LUT for FY 2021-2022 should be available before 01-04-2021 for doing exports on or after 01-04-2021.
5. The GSTN common portal has activated the facility to furnish LUT for FY 2021-22.
6. 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.
7. Step by step Procedure for Submission of Letter of Undertaking
(a) Access the GST Portal at www.gst.gov.in URL. The GST Home page is displayed
(b) Login to the GST Portal with valid credentials.
(c ) Click the Services > User Services > Furnish Letter of Undertaking (LUT)
(d) Select the financial year for 2021-22 from the LUT Applied for Financial Year drop-down list.
(e) Click the Choose File button to upload the previous LUT (In case , you have furnished LUT for the previous period, attach the same and continue to file your application)
(Only PDF or JPEG file formats are allowed & .Maximum file size for upload is 2 MB).
(f) Read and Select all the three declaration checkboxes for accepting the conditions prescribed in Letter of Undertaking.
(g) Fill the details of witnesses. Two witnesses are required to file LUT. The name and address of witnesses will be required.
(h) Select the authorized signatory
(i) Click the PREVIEW button to preview the form.
(j) You can click the SAVE button to save the form and retrieve later.
(k) Click the SIGN AND FILE WITH DSC or SIGN AND FILE WITH EVC button.
7.1 Screenshot of the procedure :
8. 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.
The author can be approached at [email protected]
(Republished with Amendments)