GST LUT Fillings

A Comprehensive Guide on GST LUT Fillings

Do you know India's fundamental export laws? You are not required to pay GST if you receive payments in foreign currency from outside sources. The GST LUT Form becomes an essential tool for exporters attempting to manage the difficulties of cross-border transactions. Using the GST LUT Form, you may easily handle your export transactions and avoid having to pay the Integrated Goods and Services Tax (IGST) at the time of supply. The goal of Lawgical Adda is to serve as your go-to resource for knowledge and advice on using the GST LUT.

What is the Letter of Undertaking under GST?

The letter of undertaking that the user submits certifies that all GST obligations have been met. It is provided if exports are made without IGST being paid. Additionally, per Central Tax Notification No. 37 (2017), LUT must be provided to export products, services, or both without paying IGST. The exporter must pay IGST or offer an export bond if he cannot furnish the LUT. Previously, LUT could only be submitted offline to the relevant GST office. However, the government has made the LUT filing online to streamline the procedure further.

Qualifications

The following requirements must be met in order to be eligible to apply for a LUT:

1. Any registered taxpayer exporting goods and services may use the Letter of Undertaking (LUT). However, this option is not available to those prosecuted for tax evasion of more than Rs. 250 lakh.
2. The applicant intends to supply goods or services to Special Economic Zones (SEZs), other countries, or within India.
3. GST Registration: To profit from a LUT, an entity must be registered under the GST system.
4. Tax-Free Supply: One of the main prerequisites for applying for an LUT is to supply goods without imposing an integrated tax.

LUT conditions:

The registered person hereby consents, on application of the LUT, to pay the applicable tax and interest. In the time frame of —

1. If the goods are not exported out of India, the period of 15 days after the expiration of three months, or an additional period if permitted by the Commissioner, from the invoice date for export, or 15 days after the expiration of one year, or an additional period if permitted by the Commissioner, from the invoice date for export, provided that the exporter does not receive payment for these services in convertible foreign exchange.
2. Furthermore, it has been made clear by Circular No. 45/19/2018, dated May 30, 2018, that a LUT or bond is not necessary for refund claims resulting from the export of non-GST and exempted items without the upfront payment of integrated tax.

The Government has underlined that any registered person prosecuted for any infraction under the GST or other current legislation with tax evaded over Rs. 2.5 crores will not be allowed to disclose LUT, per Notification No. 37/2017 - Central Tax dated 04.10.2017.

Applicability of the Letter of Undertaking (LUT)

The filed LUT is good for the entire fiscal year for which it is submitted. Every financial year, a new LUT must be submitted. According to Section 50 (1), the Exporter must pay GST and 18% interest within 15 days if the items for export are not exported within three months of the Date of Invoice issuing. Additionally, the exporter is responsible for paying GST at 18% within 15 days if payment for the rendered services was not received within the year after the LUT was submitted. If this isn't done, the LUT facility will be withdrawn; however, with further payments, it can be reinstated.

You can download the form from www.cbec.gov.in as long as it is accessible on the website. Then, give the completed form to the Assistant Commissioner or Deputy Commissioner in charge of your place of business.

How to acquire a LUT?

1. Verify your eligibility by making sure you meet the aforementioned requirements.
2. Submit GST RFD-11 form: You need information such as your witness details, financial year, and GSTIN to complete this form. After the principal signatory or any other authorised signatory digitally signs it, you can file it online using the GST portal.
3. Send in with an Electronic Verification Code (EVC) or Digital Signature Certificate (DSC): After selecting your favourite signing technique, send in the form.

How do you submit a certificate of LUT?

1. To submit the LUT certificate, you must first go to the GST portal and choose "USER SERVICES" from the "SERVICE TAB" menu.
2. The option to FURNISH LETTER OF UNDERTAKING (LUT) is available in the drop-down menu.
3.  Instead of submitting a PDF copy of the previous financial year's LUT (if any), you must select the financial year for which you wish to upload a certificate after choosing this option.
4.  You must then complete the form after entering the names, residences, and jobs of the two witnesses.
5. Once this procedure is finished, you can see a preview of the form. An electronic identification code or a digital signature certificate can be used to sign the application.
6. The letter suggests two possibilities. The undertaking application form cannot be changed after it has been signed and submitted. It is available for download on the GST portal.

Documents Needed for LUT in Light of GST

You will require the following paperwork to apply for a Letter of Undertaking (LUT) under GST:

1. LUT Cover Letter: A letter of request signed by a duly appointed official.
2. Eligibility: Verify that you satisfy the requirements (no significant incidents of tax evasion).
3. A copy of the GST registration evidence of your GST registration.
4. Entity PAN Card: A PAN card for identification.
5. Authorised Person KYC: Verification of the authorised person's identity and address.
6. The GST RFD 11 Form is the LUT application.
7. A copy of your IEC code if you export anything.
8. Cheque Cancelled: From the linked bank account.
9. Authorised Letter: Giving the designated signature authority.

Pro Tip: A LUT is good for one fiscal year. It must be renewed yearly. After providing a LUT, failure to comply with GST requirements may result in fines (including interest) and LUT cancellation. You must keep accurate records and supporting paperwork for your export claims.

Navigating the complexity of exporters' LUT (Letter of Undertaking) filing requirements has never been easy. Lawgical Adda specialises in expediting the procedure so you may concentrate on growing your export business. Simplify your LUT file now, and work with us to start your export path more smoothly. Get in touch with us to enjoy a simple and effective GST LUT filing process that will enable your export endeavours like never before.