LUT Registration Online| Fees | Process | Documents

What is LUT Registration

To promote the export of goods or services, the government has provided various reliefs and benefits under GST. Exports help to create employment, achieve a favorable balance of payment situation and boost the economic growth of the country. GST law provides 2 options to exporters:-
1) Export without payment of Taxes by applying for LUT Registration or Export Bond.
2) Export with payment of Taxes and claim a refund later.

Export Without Charging GST Using LUT – Letter of Undertaking

Generally, when an entity exports goods or services, are required to pay taxes. However, the GST law allows taxpayers to claim a refund of these taxes paid.

The GST method also offers an attractive alternative, where the taxpayer can apply for a Letter of Undertaking or Export bonds with the GST department. If the application is accepted by the department then the taxpayer is not required to pay any taxes on export, sparing the efforts for claiming a refund and avoid blocking of funds payment of taxes.

What is LUT Registration – Letter of Undertaking

The Letter of Undertaking (LUT) is a prescribed document to be furnished in Form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment. Any person registered under GST can submit a LUT only if they have not been prosecuted for tax evasion exceeding Rs. 2.5 Crore, or for any other offense under the CGST Act, the IGST Act 2017, or any other existing law. If the exporter does not meet the LUT requirements, his privileges can be revoked and he must leave a deposit.

Please note :

Letter of Undertaking (LUT) is to be filed online before exporting any goods/services.

Benefits Of LUT And Bond

• Export of good or services without having to pay taxes
• Avoid the trouble refund of the tax paid on exports
• Frees up working capital
• LUT once filed remains valid for a period of 12 months from the date of submission.
• The entire process of filing LUT, acceptance by the department online. Bond is to be manually by submit to the department.

Documents Required For LUT

In Case Of LUT

• Previous LUT Certificate
• GST Login ID and Password
• DSC of authorized signatory
• Details of witnesses (Name, Occupation, and Address)

In Case Of Bond

• GST Form RFD – 11 on the letterhead of the entity
• Bond on stamp paper
• Guarantee from Bank
• Details of witnesses (Name, Occupation, and Address)
• Authority letter (In case of a company – Board Resolution)
• Other supporting documents
• Copy of IEC code
• Canceled Cheque
• Pan card
• Export Invoice

If you want to get started with LUT Registration, reach out to Chartered Accountants from CA in Delhi ‘s homepage