Filing of LUT on GST Portal is very simple process that enables taxpayers to claim exemption from the payment of Goods and Services Tax (GST) on their exports. To file a LUT, taxpayers need to have a GST identification number (GSTIN) and need to be registered on the GST portal. Once they are registered, they can log in to the portal and follow the steps to file their LUT.
FORM RFD-11: Filing of LUT in GST Portal
All registered taxpayers who export the goods or services will have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the GST portal in order to make exports without payment of IGST.
When to file an LUT?
Letter of undertaking has to be filed /submitted online before exporting the goods/services. Prior to this, exporters had to manually submit the filled and signed RFD-11 on Business letterhead in duplicate –
- One to the Jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business where the verification with the Export documents happens through ICEGATE medium
- Another along with the Export documents to the Customs clearing authority.
Who is required to submit LUT using GST RFD-11?
All GST-registered exporters of goods and services must file a GST LUT. Exporters who have been charged with a crime or committed tax evasions totaling more than Rs 250 lakhs under the CGST Act, the Integrated Goods and Services Act of 2017, or any other applicable legislation are ineligible to submit a GST LUT. They would need to provide an export bond in these circumstances.
In this case, the government wanted to increase the export base by granting export subsidies. Any registered person may submit an export bond or LUT in GST RFD 11 in accordance with the CGST Rules, 2017 without having to pay the integrated tax.
They may apply for LUT if They are GST-registered and plan to provide goods or services to India, other countries, or SEZs. They want to sell goods without having to pay the incorporated tax.
Required Documents for LUT under GST
- Any person registered under GST who has not been executed for tax evasion exceeding Rs. 250 lakh or for any other felony may submit a LUT.
- Request for acceptance in LUT in a cover letter – properly executed by an authorised party
- Copy of the entity’s PAN card for GST registration and KYC for the authorised person/signer
- GST RFD-11 form
- IEC code
- Cancelled Cheque Authentication letter
Who is eligible to use a Letter of Undertaking (LUT)?
The Letter of Undertaking is available to every registered taxpayer who exports goods and services. Anyone who has faced legal action for tax evasion involving Rs. 250 lakh or more is ineligible. These LUTs are only valid for a year, and exporters must provide a new LUT for each fiscal year.
The rights will be removed and the exporter will be required to post bonds if the conditions outlined in the LUTs are not met within the allotted time frame.
If the export is made without the IGST being paid, other assesses must provide bonds. Bonds and LUTs can be applied to: Zero-rated supplies without IGST payments to SEZ Exporting products to a nation outside of India without paying IGST Without paying IGST, it provides services to a client in a non-Indian nation.
Submission of a Letter of Undertaking (FORM GST RFD-11)
The following format is used to file the Form RFD-11:
- GST Number,
- Registered Name, and
- Date of Furnishing Date, place, and signature
- Witness information