Are you an exporter in India? If so, it is very important to your bottom line and smooth running of your export business to understand Letter of Undertaking under India's Goods and Services Tax or GST structure.
We at StartupFlora know how complex GST laws are. Let us guide you through LUT GST filing and availing GST for exporters.
What is Letter of Undertaking (LUT) in GST?
Letter of Undertaking is an authorization document issued to eligible exporters under which they are allowed to make exports of goods or services without making Integrated Goods and Services Tax, IGST. Thus, in LUT the exporter himself submits before the government an undertaking that he will comply with the tax liability as regards his own GST liabilities.
Who is Eligible to File a LUT?
Any registered taxpayer who exports goods or services, after satisfying the following conditions shall be eligible to file LUT
No offence has been prosecuted against them under the Central Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax Act, 2017.
They have not been held guilty of any offense under these Acts, involving a tax evasion of ₹250 lakhs or more.
Benefits of Filing LUT under GST
Improved Cash Flow: As the entire amount is not paid earlier, the IGST payments avoided would also keep the working capital of the export better than before.
Reduced Compliance Burden: LUT, though it is filed reduces hassles while claiming refunds against IGST and thus increases the pace of export with lesser papers and time at customs to clear the said exports.
Enhanced Competitiveness: It would make your products or services even more competitive in the global market by saving export costs through LUT.
How to Fill LUT GST RFD-11
StartupFlora has made the filing process of LUT GST return much easier for you. Below is the step by step procedure to fill LUT GST return:
Login to GST Portal: Login into the GST portal with your login.
Form GST RFD-11: Under services, click on Refund and then click on LUT.
Fill the Form: You would have to fill all the details in Form GST RFD-11 including your GSTIN, legal name, and export details.
Submit the Form: After all the details are filled, you need to submit this form electronically.
Validity: The LUT is valid for the whole financial year.
StartupFlora: Your Partner in GST LUT Filing
LUT GST filling is generally confusing and complicated. At every stage, professionals from the website StartupFlora guide and advise so that the process is hassle-free.
Eligibility of the firm for filing LUT
Supporting in filling the forms for GST RFD-11
Filling up of the form correctly and before time
Follow-up the latest GST policy
What is more important is not missing the opportunity that GST is providing to the exporters. Easy today with our experts guiding you through the LUT GST Filing procedure, so your business exports without hassle.
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