Get your Exporters GST (LUT) in 3 easy steps.
Letter of Undertaking under GST (LUT)
All you know about Letter of Undertaking under GST (LUT)
Letter of Undertaking commonly known
as LUT, as per the of GST law it is prescribed to be furnished in form GST RFD
11 whereby the exporter declares that he/she would fulfil all the requirements
prescribed under GST while exporting without making
IGST payment.
All GST registered goods and service
exporters are eligible to submit LUT except the exporters who have been
prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs
under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of
the existing laws. In such cases, the exporter is not eligible to file LUT,
they would have to furnish an export bond.
It will be valid for a period of
twelve months from the date of submission. If the exporter fails to comply with
the conditions of the Letter of Undertaking, privileges could be revoked and
the exporter would be required to furnish a bond.
Export Bond for GST
Entities not eligible to submit a
Letter of Undertaking (LUT) as conditions prescribed in law would have to
furnish an export bond along with bank guarantee. It should cover the amount of
tax involved in the export based on estimated tax liability as assessed by the
exporter himself. It is to be noted that exporters need to have Import Export Code (IEC) license to export goods or services.