GST LUT Form
Filing a GST LUT (Letter of Undertaking) is a process for Indian exporters that allows them to export goods and services without paying IGST. This form is filed online through the GST portal and is valid for one financial year.
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LUT in GST: Your Guide to Tax-Free Exports
For exporters in India, a Letter of Undertaking (LUT) is a vital document that allows them to export goods and services without having to pay Integrated Goods and Services Tax (IGST). Filing the GST LUT Form (GST RFD-11) is a mandatory step that enables businesses to claim this exemption, simplifying their export operations and freeing up working capital.
At FileMyFirm, we specialize in providing end-to-end LUT filing services, helping you navigate the process efficiently and stay compliant.
What is LUT in GST?
The LUT full form is Letter of Undertaking. It is a legal document that an exporter files with the GST authorities, promising to fulfill all the requirements of the GST Act. By filing an LUT, exporters can make zero-rated supplies, which include:
- Exports of goods or services outside India.
- Supplies of goods or services to a Special Economic Zone (SEZ) Unit or SEZ Developer.
The LUT is valid for one financial year and must be filed annually to continue enjoying the benefits.
Eligibility for LUT Filing
To be eligible to file an LUT, an exporter must meet the following criteria:
- The business must be a registered taxpayer under GST.
- The exporter must not have been prosecuted for any offense under the GST Act, where the amount of tax evaded exceeds ₹250 lakh.
- The exporter must intend to supply goods or services outside of India or to an SEZ.
If an exporter does not meet these criteria, they must furnish a GST bond instead of an LUT. A bond requires a bank guarantee and is a more complex process.
Documents Required for LUT Filing
To complete the online LUT filing process, you will need to prepare the following documents:
- LUT Cover Letter: A formal request letter signed by an authorized person.
- GST Registration Certificate: Proof of your GST registration.
- PAN Card: Of the entity.
- IEC (Import Export Code) Certificate: If applicable for your business.
- Bank KYC Details: Canceled cheque and details of your bank account.
- Authorized Signatory Details: ID and address proof of the authorized person.
Benefits of Filing LUT for Exporters
Filing the LUT offers significant advantages that can improve an exporter’s financial health and operational efficiency:
- No IGST Payment: The primary benefit is the ability to export without paying IGST, which prevents your funds from being locked up as tax payments.
- Improved Working Capital: By not paying IGST on exports, businesses can maintain better cash flow, which is crucial for small and medium-sized enterprises (SMEs) managing their working capital.
- Simplified Refund Process: The alternative to filing an LUT is to pay IGST and then apply for a refund. The LUT process bypasses this complex and time-consuming refund procedure.
- Streamlined Compliance: A single LUT is valid for a full financial year, eliminating the need for repetitive filings and reducing administrative burden.
Simplify LUT Filing with FileMyFirm
The process of filing of LUT in GST can be daunting, but with FileMyFirm, it becomes simple and hassle-free. Our expert team assists you with:
- Preparing and verifying all the necessary documents required for LUT under GST.
- Handling the online submission of Form GST RFD-11 on the GST portal.
- Ensuring your application is accurate and compliant to avoid any rejections.
Ready to unlock the benefits of tax-free exports? Contact FileMyFirm today to start your GST LUT filing and streamline your export business.
Frequestly asked questions ( FAQ )
The acronym LUT stands for Letter of Undertaking. It is a legal document filed by an exporter (Form GST RFD-11) with the GST authorities.
The primary purpose of the LUT is to allow registered exporters to make zero-rated supplies (exports of goods/services or supplies to SEZ Units/Developers) without having to pay Integrated Goods and Services Tax (IGST).
The GST LUT Form must be filed by all registered exporters in India who wish to export goods or services without paying IGST.
Exporters who are not eligible to file an LUT (for instance, those who have been prosecuted for an offense under the GST Act involving tax evasion exceeding ₹250 lakh) must instead furnish a GST bond with a bank guarantee.
Filing the LUT provides significant financial and operational advantages for exporters:
No IGST Payment: It allows the exporter to make zero-rated supplies without paying IGST upfront.
Improved Working Capital: By eliminating the upfront tax payment, the business’s funds are not locked up, ensuring better cash flow and working capital management.
Simplified Compliance: It bypasses the complex and time-consuming procedure of paying IGST first and then applying for a tax refund.
The GST LUT is valid for one full financial year (April 1st to March 31st).
Although there is no statutory “due date” for the filing itself, the LUT must be filed at the beginning of the financial year (or before the first export shipment of the year) to ensure the exporter can enjoy the benefit of IGST exemption for the entire year. It must be filed annually.
To be eligible to file the LUT (Form GST RFD-11), the exporter must:
Be a registered taxpayer under GST.
Not have been prosecuted for any offense under the GST Act where the amount of tax evaded exceeds ₹250 lakh (₹2.5 crore).
The filing of LUT in GST is done electronically:
The exporter logs into the official GST portal.
They navigate to the services section and select “Furnish Letter of Undertaking (LUT)” (Form GST RFD-11).
The form is filled out, providing details and self-declarations, including a formal request letter (LUT Cover Letter).
The LUT is signed by the authorized signatory using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) and submitted online.