GST LUT Filing

Letter of Undertaking (LUT) and Export Bond Services Under GST

We offer door-to-door facilities for filing Letter of Undertaking (LUT) and Goods and Services Tax (GST) regime Export Bonds. Services are offered to facilitate exporters in accepting the regulatory process, thereby guaranteeing them to execute export transactions without any hassle.

Letter of Undertaking (LUT)

Letter of Undertaking (LUT) that can be accessed as GST RFD-11 is exporter undertaking form. They mention that for cases where already goods or service export has taken place without payment of Integrated Goods and Services Tax (IGST), they would have their GST compliances intact. This facility is availed by exporters who have an input tax credit facility at their end but still maintain their supply zero-rated.

Eligibility to file LUT

Substituted GST registered businesses exporting goods or services in trade are eligible to file LUT. Taxpayers who have been convicted for offenses under ₹250 lakhs tax evasion for Central Goods and Services Tax (CGST) Act, Integrated Goods and Services Tax (IGST) Act, 2017, or any other act carrying the business will be asked to file an Export Bond. 

Conditions for availing LUT

Registered entities can file an Export Bond or LUT under GST RFD 11 without paying IGST for supplying goods or services on the below:

• They want to supply goods or services to Indian Special Economic Zones (SEZs) or overseas.
• They hold proper GST registration.
• They want to supply goods on delayed payment for IGST.
• Documents to File LUT

The following is to be filed LUT:

• LUT acceptance letter bearing signatory's signature within due course.
• Copy of original GST registration certificate.
• PAN card of exporting company.
• KYC documents of signatory.
• Filled-in GST RFD-11 form.
• Copy of IEC.
• Cancelled cheque.
• Procedure for LUT Filing

​​Procedure includes:

• Jurisdiction verification and furnishing requirement.
• Compilation of documents required for the GST RFD-11 form.

Eligibility Criteria for LUT Filing

Any tax payer who has paid tax and is engaged in export of services or goods is entitled to file an LUT except the taxpayers under suspicion for tax evasion of over ₹250 lakhs. Only one LUT in a year can be filed, which needs to be revalidated each year. Filing of Export Bonds needs to be done in case of default in following the rules of LUT.

Use of LUTs and Export Bonds

LUTs and Export Bonds may be used for:

• Zero-rating of supply to SEZs without payment of IGST.
• Export of Indian goods without payment of IGST.
• Supply of services to foreign recipients without payment of IGST.
• Furnishing GST RFD-11 Form

Following details are to be furnished on the GST RFD-11 form:

• Name of registered business.
• Address of business.
• GST Identification Number (GSTIN).
• Date of furnishing.
• Date, place, and signature of furnishing.
• Witness details.

Export Bond Requirements

The firms that are not eligible to issue LUT will have to file an Export Bond and, if necessary, a bank guarantee. The bond will discharge the estimated incidence of tax on exports, self-assessed.

Bond Requirements:

• Export bonds will have to be filed on non-judicial stamp paper, the value of which will be based on the state of filing.
• The running bond, when given, would suffice for various export transactions.
• Max. 15% of bank guarantee in normal cases of value in the form of bond can be used. It may be dispensed with by jurisdictional GST Commissioner in the case of exporter if there has been past history.

Details of Bond Form:

• Name of business under which the business is being registered.
• Address of the business.
• Paid under bond amount.
• Date filed.
• Paid under bank guarantee amount (in case thereof).
• Date, date of place and filing and signatory.
• Witness details.