File Letter of Undertaking (LUT) in GST
What does LUT imply in the context of GST?
LUT stands for Letter of Undertaking (LUT). It is required to be submitted in the form GST RFD 11 under rule 96 A, in which the exporter certifies that he or she will comply with all GST requirements when exporting without paying IGST.
Who are eligible to submit a LUT in Form GST RFD-11?
All GST-registered goods and service exporters must file a LUT. Exporters who have been prosecuted for any offenses or tax evasions totaling more than Rs 250 lakhs under the CGST Act, the Integrated Goods and Services Act, 2017, or any other legislation are not eligible to file the GST LUT. They would be required to provide an Export bond in such situations.
Any registered person can submit an Export bond or LUT under GST RFD 11 without paying the integrated tax under the CGST Rules, 2017. They can apply for a LUT if They can apply for a LUT if:
i) they plan to supply products or services to India, other countries, or special economic zones (SEZs).
ii) They are GST registered.
iii) They want to sell products without having to pay the integrated tax.
Documents Required for a LUT
A LUT can be submitted by any GST-registered individual who has not been punished for tax evasion of more than Rs.250 lakh or any other violation.
- LUT cover letter – acceptance request – signed by an authorized person
- GST registration copy
- The entity’s PAN card
- KYC of the authorized person/signatory
- GST RFD11 form
- IEC code copy
- Canceled Cheque
- Authorized letter
GST LUT Filing in Kerala
The Letter of Undertaking is a declaration by the user that all requirements under the GST Act have been met. If any exports are done without paying the IGST, the GST LUT in Kerala is provided. If you intend to export goods or services without paying IGST, you must file a GST LUT in Kerala.
If a person fails to file the LUT, he is required to pay the IGST or provide an export bond. The whole GST LUT filing procedure in Kerala is completed entirely online.
Validity of the GST LUT in Kerala
In Kerala, the Letter of Undertaking is valid for the whole financial year in which it is presented. Each financial year, a new LUT must be filed. If export items are not shipped within three months of the invoice date, the exporter is responsible for paying GST plus 18% interest within 15 days. In addition, if payment for services is not received within one year of the LUT being submitted, the exporter is responsible for paying GST at 18 percent within 15 days. Failure to comply with this will result in the GST LUT facility being revoked, however, it can be reinstated.
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Suggested Reading: Precautions to be taken after GST registration in India
