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Filing LUT in GST for Exporters – Simplified by Compliance Monk

Export Without IGST & Save Your Cash Flow! ✈️💰A Letter of Undertaking (LUT) is your gateway to exporting goods or services without paying IGST upfront. Under the GST framework, it ensures exporters can carry out zero-rated exports smoothly.

  •  Tax-Free Exports: Say goodbye to IGST payments and hello to better liquidity.
  • Simplified Refunds: Skip the tedious refund claims—your wallet will thank you!
  •  Enhanced Working Capital: Free up funds to invest in what truly matters—growing your business.
  •  Long-Term Ease: Valid for an entire financial year, cutting down on repetitive paperwork.

Ready for Hassle-Free Exporting?

Let Compliance Monk handle your LUT filing while you focus on growing & expanding your business. 📞 Contact us today to streamline your exports and enjoy tax-free transactions like a pro! 🌍✈️

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Key Advantages

Expert Guidance

Our skilled professionals will navigate you through every step, making the registration experience seamless.

Quick Turnaround

We value your time and ensure prompt services, helping you initiate your business promptly and effectively.

Reliable Support

Our dedicated support team is always ready to answer your questions, assisting you every step of the way.

GST LUT Form

What is LUT in GST?

Under the GST framework, LUT simplifies tax compliance for exporters, ensuring smooth zero-rated exports. It eliminates the hassle of paying taxes first and claiming refunds later!

Who’s Eligible to File LUT?

To file an LUT, you must:

    •  Be GST Registered: Your business must hold a valid GSTIN.

    •  Export Goods/Services: To foreign countries or Special Economic Zones (SEZs).

    •  Be Compliant: No tax evasion cases exceeding ₹2.5 crores.

    •  Engage in Zero-Rated Supply: Export goods/services without paying IGST.

🕰️ LUT Validity & Non-Compliance
    • Validity: Your LUT is valid for one financial year. File a fresh LUT at the start of each year.

    • Non-Compliance: Missed timelines? Your LUT privileges may be revoked, requiring you to furnish a bond instead.

📝 When to Opt for Bonds Instead of LUT

If you’re not eligible for an LUT, you’ll need to file a bond (often backed by a bank guarantee). Bonds provide financial security to the government and are typically required when:

    • Exporting goods without IGST payment.

    • Supplying zero-rated goods/services to SEZs.

    • Providing services to international clients without IGST.

📂 Documents Required for LUT Filing

Here’s your checklist for hassle-free LUT filing:

  • GST RFD-11 form.
  • GST registration certificate.
  • PAN card of the entity.
  • Authorized signatory’s KYC (e.g., Aadhaar or Passport).
  • Cancelled business cheque.
  • Cover letter requesting LUT registration.
  • IEC code (if applicable).
  • Authorization letter for the signatory.

Ensure all documents are clear and up-to-date to avoid delays in the registration process.

Step-by-Step:  File LUT on the GST Portal🛤️
    • Login: Head to the GST portal and log in.

    • Navigate: Click on “Services” > “User Services” > “Furnish Letter of Undertaking (LUT).”

    • Fill Details: Enter GSTIN, export info, and authorized signatory details.

    • Upload Documents: Attach required documents like GST RFD-11 and authorization letters.

    • Submit & Download: Review and submit. Save the acknowledgment for future reference.

💵 Refund of IGST Paid on Exports

Paid IGST instead of filing an LUT? Don’t worry—you can still claim refunds! Here’s how:

    • File GSTR-1: Include export invoices under Table 6A.

    • Use the Shipping Bill: It doubles as your refund application.

    • Match Data: Ensure GSTR-1 matches details uploaded to the ICEGATE portal.

    • Refund Approval: Upon verification, GST authorities credit the refund to your bank account.

Key Points to Remember:

    • Annual Renewal: File a fresh LUT every financial year.

    •  Non-Compliance Costs: Miss deadlines? Pay tax + interest!

    •  Bond Backup: Not eligible for LUT? Bonds with bank guarantees are your go-to.

Why Choose Compliance Monk?

📞 Contact us today to streamline your exports and enjoy tax-free transactions like a pro! 🌍✈️

Why sweat over complex GST processes when Compliance Monk is here to help? Here’s how we make it simple:

    • Expert Guidance: Our GST experts ensure seamless LUT filing.

    •  Accuracy: We handle the documentation and avoid costly mistakes.

    •  Timely Reminders: Never miss a renewal deadline!

    •  End-to-End Support: From registration to submission, we’ve got you covered.

FAQs

1. What is a Letter of Undertaking (LUT) under GST?

A Letter of Undertaking (LUT) is a legal document that allows exporters to make zero-rated supplies (exports) without paying Integrated GST (IGST) at the time of supply. It is a declaration by the exporter to comply with GST laws and conditions.

2. Who can file an LUT under GST?

Exporters meeting the following criteria can file an LUT:

  • They are registered under GST.
  • They are engaged in exporting goods or services to foreign countries or Special Economic Zones (SEZs).
  • They have not been prosecuted for tax evasion exceeding ₹2.5 crores under GST laws.

3. Is LUT mandatory for all exporters?

No, LUT is not mandatory for all exporters. It is required for those who wish to export without paying IGST. Exporters who do not file an LUT must furnish a bond to ensure compliance.

4. What is the validity of an LUT?

An LUT is valid for one financial year. Exporters need to file a fresh LUT at the beginning of each financial year to continue exporting without IGST.

5. What happens if I fail to file an LUT on time?

If an LUT is not filed on time, exporters must pay IGST on their supplies and later claim a refund. Additionally, privileges associated with LUT filing may be revoked until compliance is restored.

6. Can I file an LUT online?

Yes, the LUT filing process is entirely online through the GST portal. Exporters can log in to their GST account, navigate to the “Furnish Letter of Undertaking (LUT)” section, fill in the details, and submit the required documents.

7. What are the documents required for LUT filing?

The documents required for filing an LUT include:

  • GST RFD-11 form.
  • GST registration certificate.
  • PAN card of the business entity.
  • Identity proof of the authorized signatory.
  • Cancelled cheque of the business account.
  • IEC code (if applicable).
  • Authorization letter for the signatory.

8. What is the difference between an LUT and a bond under GST?

An LUT is a declaration allowing exporters to conduct zero-rated supplies without paying IGST, provided they meet eligibility criteria. A bond, on the other hand, is a financial guarantee (often backed by a bank guarantee) submitted by exporters who are ineligible for LUT.

9. Do I need to pay any fees for filing an LUT?

No, filing an LUT through the GST portal is free of cost. However, if you choose professional assistance, there may be service charges depending on the service provider.

10. What should I do if my LUT is rejected?

If an LUT is rejected, review the reason for rejection and rectify any errors or deficiencies. You can then reapply with the corrected information and documents. Seeking professional guidance can help ensure error-free submission.

11. Can I export goods without LUT or IGST payment?

No, if you do not file an LUT, you must either pay IGST on exports and claim a refund later or submit a bond with a bank guarantee to avoid upfront IGST payment.

12. How can Compliance Monk help with LUT filing?

Compliance Monk offers expert assistance in:

  • Preparing and filing your LUT application.
  • Ensuring all documentation is accurate and complete.
  • Providing timely reminders for LUT renewal.
  • Resolving queries and issues related to LUT or bond filing.

13. What are the consequences of non-compliance with LUT conditions?

Non-compliance with LUT conditions may lead to:

  • Revocation of LUT privileges.
  • Payment of IGST on supplies, along with applicable interest and penalties.

14. Is LUT filing necessary for services exported outside India?

Yes, LUT filing is applicable for both goods and services exported outside India, provided they qualify as zero-rated supplies under GST.