LUT Under GST
To save taxes before your exports, file for Letter of Undertaking (LUT) with EOB. We make it hassle free and easy.
Fee: Rs. 1999 (All Incl).
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Letter of Undertaking
LUT stands for Letter of Undertaking. LUT is submitted for export orders where the exporter get tax exemption for goods or services shipped overseas or to 100% EPZ. However one can export even without an LUT. This requires the exporter to pay IGST and then claim a refund through the GST returns filed in subsequent months. However, without an LUT, the GST amount paid results in blocking of funds so its always beneficial to file LUT and take advantage of the Tx benefit. It also helps to avoid the hassle of claiming refund. The new government policies have made it easier to be eligible for LUT. The criteria is simpler and easier. By filing the LUT, the exporter undertakes that all the requirements prescribed for this route will be fulfilled by him.
ADVANTAGES
Some of the benefits of filing LUT under GST
By filing LUT under GST, an exporter can export goods or services without paying the taxes. If LUT is not filed, the exporter must first pay the required tax while making exports and then claim a refund to avail benefit of zero-rated exports.
The regular exporters are at a huge benefit by filing LUT online as the refund process under another route is a time-consuming process. During which the bunch of capital is blocked in the form of a due refund. With this mode, the capital is free to be utilized for other necessary requirements. It also reduces the cost of exports.
The Letter of Undertaking, once filed is valid for the whole financial year in which it is filed. Hence, unlike refund process, an exporter does not need to go through the procedural requirements every time an export consignment is carried out.
The filing of LUT and its acceptance, both are made online since April, 2018. The applicant does not need to visit the officers for acceptance. The whole process can be completed online by submitting a few required documents.
ONLINE REGISTRATION
Documents required for LUT filing
THE PROCEDURE
Process of filing LUT under GST
- Document collection as per list provided.
- Verifying document readiness.
- LUT preparation as per requirement.
- Online submission
- Record the ARN with acknowledgement.
- Completion of process.
FREQUENTLY ASKED QUESTIONS
Explore LUT Registration
What should be filed in the LUT?
Once you login to the GST Portal, the basic information is already collected. The user has to then select the year for filing the LUT and upload the documents necessary (listed above).
How does one export goods or services from India?
The business will need to apply for IE Code to be able to export goods or services from India. Without the LUT, the business has to pay IGST and claim refund against exports. With LUT, the GST is exempt.
Who is eligible to file Letter of Undertaking?
Any exporter can apply for an LUT and get tax exemption. The procedures is simplified largely.
For how long is the LUT valid?
The LUT is valid till the end of the financial year in which it is applied. However if the conditions for the export are not met, the same can be withdrawn till the conditions are fulfilled.
Do we re-file for continued benefits of LUT?
It has to re-filed every year for as long as you wish to take the benefits. Its advisable to file for LUT at the beginning of every year.
Can the LUT application be viewed online after filing?
Yes, the Taxpayer will be able to see his LUT after filing.
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