GST - Letter of Undertaking(LUT)
Introduction
Every registered person can make export of goods or services. To make exports, there are two ways to do that:
- By paying IGST on export of goods or services. Subsequently, you may claim refund of the same, if eligible.
- Another option is to file letter of undertaking (LUT) in Form GST RFD-11 to get exemption from payment of IGST on export of goods or services.
In the initial years, LUT used to be filed manually with the jurisdictional GST authority. Thereafter, it is filed online at GST portal with less documentation and minimal human intervention.
Key points to note about LUT
- LUT is to be filed prior to export.
- LUT is valid for a single FY.
- LUT can only be filed by a registered person who has not been prosecuted for any offence under the GST law where tax evasion involves INR 250 crores or more.
Procedure to file online LUT
- Login at GST portal with GST login credentials
- Go to services > user services > My applications > LUT
- Thereafter, punch all the details as required in form GST RFD-11 along with two witness details.
- Check the preview form.
- Submit the form online.