WHAT IS LUT/Letter of Undertaking??
LUT stands for the Letter of Undertaking. It is a document filed by an exporter to get a relief from payment of IGST on exports. In case if LUT has not been filed, the export can be made only through payment of IGST or by furnishing an export bond.
WHAT IS LUT/Letter of Undertaking??
LUT stands for the Letter of Undertaking. It is a document filed by an exporter to get a relief from payment of IGST on exports. In case if LUT has not been filed, the export can be made only through payment of IGST or by furnishing an export bond.
WHY LUT/ Letter of Undertaking?
Earlier, the importers & exporters had to pay IGST on import and export of goods. However the exporters were able to claim the refund of GST, but claiming refund involved very lengthy process.
To solve problem of liquidity crunch faced by exporters and to encourage the exports the government has introduced the option of filing LUT Certificate, wherein exporters can conduct exports by getting relief on payment of IGST, after specifying that their motive is export of goods.
WHO CAN FURNISH LUT/ Letter of Undertaking??
All registered persons under GST who intend to export goods without payment of IGST can furnish a Letter of Undertaking. The individuals who have violated any law or have been prosecuted for any offence under CGST Act, 2017 or IGST Act, 2017 or any existing laws in force, or in case the amount of tax evaded by them exceeds ₹ 2.5 crores cannot apply for LUT.
WHAT IS THE VALIDITY OF LUT REGISTRATION?
The validity of LUT is for a complete financial year in which it is given.
UNDER WHAT CIRCUMSTANCES RELIEF OF LUT CAN BE CANCELLED?
If outstanding GST tax along with interest is not paid by registered person within the specified period then the relief of export without IGST payment of integrated tax will be cancelled.
WHAT DOCUMENTS ARE REQUIRED??
No documents are required to be upload along with online application. However, to file the application, below documents/ information shall be available:-
- Detail of witnesses along with their identity and address proofs
- Consent letter of witnesses for such LUT
- Acceptance letter from department acknowledging LUT of any previous year..
PRICING– 1,999/-
DURATION– 1-2 Days