What is GST LUT Filing?

GST LUT (Letter of Undertaking) Filing is a service under the Goods and Services Tax (GST) system in India. A Letter of Undertaking (LUT) is a declaration made by an exporter stating that they will fulfill all GST-related compliance requirements and are not seeking a refund of the tax paid on inputs or input services used in the export. It allows exporters to export goods and services without paying Integrated Goods and Services Tax (IGST) on their exports.

Benefits

  • Zero Upfront IGST Payment: Exporters can export goods or services without paying IGST upfront, which simplifies cash flow management.
  • Avoids Refund Process : Helps avoid the refund process for input tax credits, reducing administrative burdens.
  • Compliance : Ensures compliance with GST regulations by declaring adherence to all GST requirements.
  • Streamlined Export Process : Facilitates smoother export transactions by eliminating the need for IGST payments.

Process

01

Eligibility Check

Ensure that your business is registered under GST and has not been prosecuted for GST-related offenses.

02

Preparation of Documents

Gather all necessary documents required for the application.

03

Application Submission

Submit the application in Form GST LUT to the GST authority.

04

Approval

Once the application is reviewed and approved by the GST authority, the LUT is issued.

05

Utilization

Use the approved LUT to carry out zero-rated export transactions.

Documents Required

  • GST Registration Certificate : Proof of GST registration of the business.
  • PAN Card : Permanent Account Number (PAN) of the business.
  • Proof of Business Address : Documents such as rent agreement, utility bills, or property tax receipts showing the business address.
  • Bank Account Statement : A recent statement of the bank account used for business transactions.
  • GST Returns: Copies of recent GST returns (GSTR-1, GSTR-3B) to demonstrate compliance and business activity.
  • Export Documents: Details of previous export transactions, including invoices and shipping bills, if applicable.
  • Authorization Letter : If the LUT is being filed by an authorized representative, an authorization letter from the business is required.
  • Legal Compliance Documents : Any documents proving that the business has not been prosecuted under GST or other tax laws.

Our Support?

  • Expertise : Professional guidance ensures a smooth and efficient filing process.
  • Time-Saving : We handle all paperwork and interactions with GST authorities, saving your time.
  • Compliance Assurance : Ensures that your business meets all GST requirements, helping you avoid potential issues.
  • Ongoing Support : Provides assistance with renewals and ensures continued compliance with GST regulations.

Frequently Asked Questions

Registered exporters who comply with GST regulations and have not been prosecuted for GST-related offenses are eligible to file a GST LUT.

A GST LUT is typically valid for one financial year and must be renewed annually.

Yes, a GST LUT can be amended or canceled if there are changes in the business's status or if the LUT is no longer required. This process involves notifying the GST authorities and providing relevant documentation.

Filing a GST LUT is mandatory for exporters who wish to export goods or services without paying IGST. However, if an exporter opts not to file an LUT, they must pay IGST and claim a refund later.