GST LUT Filing

Overview of GST Letters of Undertaking (LUT) Filing?

Letters of Undertaking or LUT is prescribed in the form GST RFD 11 under rule 96 A, through which an exporter declares that they will fulfil all the requirements of the GST Act while exporting without paying IGST. LUT can be provided by any person who is a registered taxpayer under the GST regime. Except for the person who has been prosecuted or found guilty of tax evasion for an amount of Rs. 2.5 crores or greater.

The validity of such LUTs is until the end of the financial year. Every financial year, the exporter must submit new LUTs. The exporter is bound to post bonds on failing to meet the LUT as per the timeframe, as the benefits are revoked.

Letters of the undertaking can be submitted online by visiting the official GST portal.

The exporter must ensure that the bonds are filled out manually because the authorities demand a physical copy. LUT/Bonds can be used in the following transactions:

• Zero-rated supplies to SEZ without IGST payment
• Providing services to a client outside of India without paying the IGST
• Payment of IGST on products exported to a country outside India

When should you apply to file a LUT, and how has the situation changed after GST?

Earlier, it was mandatory for exporters to manually submit the filled and signed RFD-11 form on two Business letterhead to –

• The Jurisdictional Deputy or the Assistant Commissioner has jurisdiction over their permanent business premise. They verified the export documents using the ICEGATE system.
• And also to the Customs clearing authority.

This resulted in the exporters’ loss of both money and time, the same as the previous excise scheme. It was a highly inefficient method of doing things. However, now the procedure has been rationalized and provides assurance to all stakeholders involved in an exporter’s business.

Step by Step guide to filling out a LUT on the GST portal

The steps to fill out a LUT are as follows:-

• Step 1: Log in to the GST Portal.
• Step 2: Got to the Services Tab, then to User Services, and Select ‘Furnish Letter of Undertaking(LUT)’
• Step 3: In the ‘LUT Applied for Financial Year’ drop-down list, choose the financial period for which the Letter of Undertaking is applied.

Note: If you have already uploaded a Letter of Undertaking manually before for another financial period, click on the ‘Choose File’ option on the same window and upload. Only PDF and JPEG files are accepted, and the upload file size limit is 2 MB.

• Step 4: On the Letter of Undertaking Form/ GST RFD-11 that displays on the screen, please fill in the information required. On the form, the following must be completed:
• Self-Declaration (a): Mark each of the three boxes by clicking on them.
• Exporter commits to the following by doing so:
• Export of goods/services must be completed by three months of the date of issue of the Export invoice or within any prescribed time authorized by the Commissioner.
  • Following the GST rules when it comes to exports.
  • If you fail to export, IGST plus interest must be paid*.
• (b) Provide Information to Independent Witnesses: Mention the names, occupations, and addresses of two independent witnesses in the red boxes.
• It is noteworthy that the Witnesses listed in the Letter of Undertaking (LUT) are also listed on the running Bond/Bank guarantee.
• Step 5: Select a file location > Click ‘SAVE’ > ‘PREVIEW’ to double-check the form’s accuracy before submitting it. It should be noted that a signed/submitted form cannot be revised at this time.
• Step 6: Sign and submit the form using one of the following methods:
• The Letter of Undertaking can be signed by the primary authorized or any additional authorized signatory. The Managing Director, the working partner, the Firm Secretary, the proprietor, or a person duly authorized by a such active partner or the Board of Directors of such company or proprietor to execute the form, can all be authorized signatories.
• DSC Submission: Sign the application with the authorized signatory’s registered Digital Signature Certificate.
• To access this feature, go to ‘SIGN AND FILE WITH DSC’ > ‘SIGN AND FILE WITH DSC’. A message box with a warning appears. ‘PROCEED’> is selected. The system generates a unique ARN (Application reference number).
• OR
• Submit With EVC: To use this option, go to ‘SIGN AND FILE WITH EVC’ > The system will send an OTP to the authorized signatory’s registered mobile phone number and e-mail address. Enter the OTP in the pop-up > A submission warning notice box appears > ‘PROCEED’> is selected to sign the application. The system creates a unique ARN (Application reference number)** for each company or limited liability partnership. A message of confirmation arrives. By e-mail and SMS, the GST Portal transmits this ARN to the Taxpayer’s registered e-mail and mobile number.
• The acknowledgement can be downloaded by clicking the DOWNLOAD button. You can also look at the Letters of Undertaking posted on the GST website.
• On the landing page, ‘SERVICES’ > ‘User Services’ > ‘View my Submitted LUTs’ Choose a timeframe > View the list of LUTs available within the given period> To see the details of a Letter of Undertaking, click ‘VIEW’ next to it.
• LUT and Bonds Format in RFD-11
• The following is the format of the RFD-11:
• LUT application form:
  • Registered Name
  • GSTIN Number
  • Address
  • Date of filing
  • Date, place, and signature
  • Witness information (Name, address and occupation)

Frequently Asked Questions