Filing of LUT in GST for Exporters

Are you an exporter looking to simplify your business operations? The GST LUT Form is a crucial document that allows you to conduct export transactions without paying Integrated Goods and Services Tax (IGST) at the time of supply. Mantra and Co is here to assist you in efficiently completing the GST LUT filing process, making your export journey smoother and more efficient.

Understanding LUT in GST

LUT stands for Letter of Undertaking and is a key component of the Goods and Services Tax (GST) framework. This document enables exporters to ship goods or provide services without the need for upfront tax payment, facilitating seamless trade activities.

GST LUT Form for Exporters

All registered taxpayers engaged in exporting goods or services must submit a Letter of Undertaking (LUT) using the Form GST RFD-11 on the GST portal. This process ensures that exporters can conduct zero-rated exports without paying IGST.

Eligibility Criteria for LUT Registration

To obtain a LUT certificate, the following criteria must be met:

1. Exporters Only: Any registered taxpayer engaged in exporting goods or services is eligible unless they have been prosecuted for tax evasion exceeding ₹250 lakh.
2. Intent to Export: The applicant must intend to supply goods or services to foreign countries, within India to Special Economic Zones (SEZs), or as zero-rated supplies.
3. GST Registration: Applicants must be registered under the GST framework.
4. Tax-Free Supply: The exporter must aim to supply goods or services without IGST payment.

Exploring the LUT Bond

An LUT under GST is valid for one financial year. Exporters must submit a fresh LUT annually. If the terms of the LUT are not met within the stipulated timeframe, its privileges may be withdrawn, requiring the exporter to furnish a bond.

Bonds are used for exporting without IGST payment under the following circumstances:

1. Zero-Rated Supplies to SEZs: Exports to SEZs without IGST.
2. Goods Export: Exports of goods to countries outside India without IGST.
3. Service Export: Provision of services to foreign clients without IGST.

Documents Required for GST LUT Registration

To apply for a Letter of Undertaking (LUT), the following documents are required:

• LUT Cover Letter: A request letter signed by an authorized person.
• GST Registration Proof: A copy of your GST registration.
• PAN Card of Entity: Proof of the entity’s identification.
• KYC of Authorized Person: ID and address proof of the authorized signatory.
• GST RFD-11 Form: The official LUT application form.
• IEC Code Copy: If involved in exports.
• Cancelled Cheque: From your registered bank account.
• Authorization Letter: Granting power to the authorized signatory.

Benefits of Filing LUT for Exporters

Filing a Letter of Undertaking (LUT) offers significant advantages to exporters:

1. Tax-Free Exports: Export transactions are conducted without the burden of upfront tax payment.
2. Streamlined Process: Eliminates the need for claiming tax refunds or follow-ups with tax authorities, saving time and reducing complexity.
3. Better Cash Flow: Funds remain accessible for business operations instead of being locked as tax payments, which is particularly beneficial for SMEs.
4. Convenience: Once filed, an LUT remains valid for the financial year, reducing repetitive filing efforts.

Key Reminders About LUT Bonds in GST

• Validity: An LUT is valid for one financial year from the submission date.
• Conditional Terms: If conditions of the LUT are unmet, privileges may be revoked, necessitating a bond.
• Alternative Option: If ineligible for LUT, a bond may be submitted with a bank guarantee covering anticipated tax liability.
• Authorized Submission: Only authorized personnel, such as a partner, proprietor, or company secretary, may submit the LUT.
• Bank Guarantee Limits: A bank guarantee accompanying the bond should not exceed 15% of the bond amount, unless waived by the GST Commissioner.

Simplify LUT Filing with Mantra and Co

Navigating the complexities of LUT filing for exporters has never been easier. Mantra and Co specializes in simplifying the process, allowing you to focus on growing your business. From document preparation to online submission, our experienced professionals ensure compliance and accuracy at every step.

Unlock the benefits of tax-free exports without the hassle of navigating GST procedures. Contact Mantra and Co today to streamline your LUT filing process and empower your export ventures.