The GST LUT Forms service in India, is one such document, which makes it extremely easy for you to carry out export transactions without paying Integrated Goods and Services Tax (IGST) while supplying the goods or services if you are an exporter.
It is a document in which the user assures that all GST liabilities are cleared. It is compulsory for the export of goods or services or both under zero-rated supply. The supply of IGST-free export requires filing of a Letter of Undertaking (LUT) as stated in Notification No. 37/2017 – Central Tax. An exporter has to either pay the IGST or an exporter bond if the LUT is not filed. Earlier, LUTs could be filed physically only at the prescribed GST office. But GST LUT forms service in India, filing has been made easier for the business community with provision to file it online with the government.
Benefit GST LUT Form?
By choosing the LUT registration in GST Company, you can carry out your export business without having to pay taxes upfront. This is an improvement over the other option, where you pay taxes upfront and wait for refunds for zero-rated exports.
No need to deal with tax claims and follow-ups with tax authorities. This saves time and makes your operations more efficient.
- Freeing Up Working Capital:
The cash you would have had to set aside to pay the tax can now be redeployed back into the business through the GST LUT registration online. This is of great assistance to small and medium-sized businesses (SMEs), who typically encounter hurdles with financing and working capital.
Regular exporters can take advantage of the long validity for the LUT, which is the whole financial year. This minimizes the preparation of repetitive filings and enables you to concentrate on your core business undertakings.
Eligibility Criteria to Apply for LUT:
This GST LUT forms service in India, can be used by any registered taxpayer who, is in the business of exporting goods and services. But you cannot use this option if you are being prosecuted for tax evasion of Rs. 250 lakh or more.
This means you must supply either goods or services in India, to countries abroad, or to Special Economic Zones (SEZ).
You have to be enrolled under the GST mechanism, through the best GST LUT registration agency to supply goods without any demand of integral taxes payments for the tax-free supply.
Tax & Process For GST LUT Form
Step 1: Visit the GST Portal and log in.
Step 2: Click on ‘Furnish Letter of Undertaking (LUT)’ under ‘SERVICES’ in the ‘User Services’ tab.
Step 3: Select the financial year for the Letter of Undertaking. Upload it if you submitted it manually for a prior period.
Step 4: Enter details into the Letter of Undertaking Form/GST RFD-11. Mark the yes or no boxes for self-declaration and provide witness details.
Step 5: Save and preview to ensure it looks correct.
Step 6: After signing (DSC or OTP (EVC)), submit the form.
On submission, you will have to download an Application Reference Number (ARN). You can also see your submitted LUTs under 'User Services' > 'View my Submitted LUTs'.
Documents Required For GST LUT Form
- LUT Cover Letter:
A cover letter signed by a person authorized to sign.
Eligibility: Ensure you are eligible (no severe tax evasion cases).
- GST Registration Proof:
Proof of registration under the GST.
- Identification of the Entity:
PAN Card of the Entity
Identification as well as the address proof of the AP in addition.
The form for applying LUT.
Copy of IEC Code (if in case of exports)
From your connected bank account.
- A letter of authorization:
Empowering the authorized signatory.
How to File LUT (Letter of Undertaking) registration in GST company, through online with Stepwise Procedure.
The LUT filing process is now available online
through the GST portal due to the Government of India, which has made it easy for the exporters. The following is the step-by-step process for LUT filing for exporting goods or services without the payment of IGST:
Step 1: Sign in to GST Portal
- Open the GST Portal (https://www.gst.gov.in)
- Login with your credentials. Login Register
- Fill in the CAPTCHA code and click on Login.
Step 2: Go to the LUT first.
- Log in and click the 'Services' menu.
- From the dropdown, choose 'User Services'.
- Click on ‘Furnish Letter of Undertaking (LUT)’
Step 3: Choose Financial Year
- Select the respective financial year for which you want to apply LUT.
- Make sure you are applying for the right period because LUTs are valid for one financial year.
Step 4: Fill in the Necessary Information
- Your GSTIN details will be fetched by the system automatically.
- Read (and agree to) the LUT declaration terms and conditions.
- Enter the necessary information, including:
- Applicant's name and residence.
- Details of and obligations as regards export
Step 5: Add Witness Details
- Provide the names and addresses of 2 witnesses.
- The witnesses must be trustworthy people because they attest to your undertaking.
Step 6: Sign the LUT Form
- Review the information filled in the LUT forms.
- Sign the form using:
- Digital Signature Certificate (DSC) (for firms and LLPs)
- Electronic Verification Code (EVC) (for proprietorships and partnerships)
Step7: Submit the LUT Application.
- To save the entered details, click on ‘save’.
- Hit ‘Submit’ to complete your LUT application.
Step 8: Record and Log for Recognition
- An Acknowledgment Reference Number (ARN) is generated upon submission.
- Save a copy of your LUT acknowledgment for future reference.
- Unless there are discrepancies, the LUT will be approved automatically, and the GST officers may contact you for clarifications.
- For each financial year, a new LUT should be filed, as the LUT is valid for only ONE financial year.
- In the absence of LUT, exporters are required to pay IGST or furnish a bond along with a bank guarantee.
- You should always keep the filed LUT and ARN in the file for compliance and audit purposes.
Proprietorship Registration
