How to file Letter of Undertaking (LUT) under GST?
Published On: Mar 26, 2018 • Last Updated: Oct 14, 2023 • 4.3 min read •
All exporters of goods or services in India are subjected to the Integrated Goods and Services Tax (IGST). Since the inception of GST, this is a mandatory step. With that said, exporters can claim refunds on their IGST by filing refunds. However, the entire process of paying the IGST and then claiming a refund creates a lot of hassles for businessmen, especially if they are new and trying to establish their business yet. To make the process more simplified, the government of India has introduced the concept of filing a Letter of Undertaking (LUT) under GST online. LUT is a document that allows exporters to export goods without having to pay taxes. Having a valid LUT under GST will allow you to carry on trade without having to worry about taxes! Now that we know how important it is for exporters to file LUT under GST. Let’s take a look at how to file LUT in GST.
How to file LUT in GST?
When exporters are desirous of conducting their trade of exports without having to pay the mandatory IGST, they have to furnish an undertaking to the Government. In India, it is known as the letter of Undertaking, which is furnished to the GST Department, online. Follow the steps below and learn how to file LUT in GST:
Step 1: Visit the GST portal to file LUT in GST
Click here to visit the GST Portal. You will see the homepage below :
Step 2: User Login to file LUT in GST
Before you know how to apply LUT in GST, you will have to login to the GST portal. You can login by entering your username and password.
Step 3: Furnish letter of undertaking
OOnce you successfully login to the portal, you need to go to the Services tab and select User Services. Then, from the drop-down list select “Furnish Letter of Undertaking”.
Step 4: Form GST RFD – 11
After you click on the “Furnish Letter of Undertaking” option, you will see the form GST RFD – 11 form. You need to submit all the details and documents. Once the form appears, you need to select “LUT Applied For Year” from the drop-down list. Further, upload the previous LUT by selecting the “Choose File” button.
Step 5: Self-declaration to file LUT in GST
To file LUT in GST you, as an applicant will have to self-certify the following –
That the export of goods will be complete within 3 months of the issue of the Export invoice;
That the exporter abides by all the provisions of the applicable GST laws; and lastly
If the export does not take place due to any reason, the applicant will pay IGST with the interest as applicable.
You can certify these, by clicking on the checkboxes –
Step 6: Add witness details
To file LUT in GST, you have to submit the details of two witnesses, such as the name, address, and other basic contact details.
Step 7: Add signatory details to generate LUT
The last piece of information that you need to apply for the LUT in GST is to provide the details of the authorised signatory and click on “Save”.
You can view this saved file from ‘saved applications’ at a later stage.
Step 8: Sign and File to furnish letter of undertaking in GST
To finally submit your LUT in GST, you need to sign and file LUT application in either of these two modes:
Submit LUT application with DSC – when the exporter chooses this, they can submit the application using the Digital Signature Certificate of the selected authorised signatory.
Submit LUT Application with EVC – The EVC option includes an OTP verification, for the LUT application. An OTP is shared on the registered mobile number and email ID of the applicant.
Step 9: Get LUT Confirmation
As soon as you complete the submission, the GST portal will send the ARN (Application Reference Number) as confirmation of your registered email ID and mobile number.
Step 10: Download your LUT in GST
After you receive the confirmation, the LUT acknowledgment receipt with the ARN is generated on the screen. You can save the acknowledgment by clicking on ‘Download’.
When you File LUT in GST online, managing taxes becomes 10 times easier for exporters in India. Filing a GST Letter of Undertaking takes only a few simple steps. You can get it done by professionals like the experts at Legalwiz.in, who can help you out with all your business registration needs!
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