A Review of “Letter of Undertaking”

Who is eligible to submit LUT?

All goods and service exporters are eligible to submit LUT except the exporters who have been prosecuted and the amount of tax evaded exceeds Rs. 2.5 Lakhs under the

1. CGST Act, or
2. SGST Act, or
3. Any of the existing laws

How to submit LUT for Exports without payment of GST?

1. LUT should be submitted in duplicate in Form GST RFD 11 to the GST Jurisdictional Officer having jurisdiction over the principal place of business.
2. LUT shall be submitted on the letter head of the registered person duly signed by persons authorised person.

Documents to be submitted along with LUT

The following documents should be submitted along with the LUT:-

1. Covering Letter requesting acceptance of LUT
2. Copy of GST Registration Certificate
3. PAN and Personal ID’s of the Undertaker & witnesses.
4. Declaration of No offence.
5. Authorisation Letter

If the LUT is not accepted within a period of 3 working days from the date of submission, it shall be deemed to be accepted.

Other Conditions-

The LUT for exports without payment of GST is valid for the whole financial year in which it is submitted. The LUT would be required to be submitted separately for each financial year.

In case the goods for which the LUT has been submitted are not exported out of India within 3 months from the Date of issue of Invoice, the exporter of goods would be liable to pay GST within 15 days along with interest @18%.

In case the payment for services for which the LUT has been submitted is not received within 1 year in convertible foreign exchange, the exporter of services would be liable to pay GST within 15 days along with interest @18%. The LUT facility shall be deemed to be withdrawn in such cases. However, if the amount mentioned in this sub-rule is paid subsequently, the facility of export under LUT shall be restored.

Modes of Submission of LUT-

LUT can also be filed in online mode for which Procedure is as follows-

1. Go to User Services and Select the Tab “Furnishing Letter of Undertaking”
2.  Select the Financial Year for which you want to furnish the LUT
3. If you have already furnished LUT Offline, for previous period, please attach the same here and continue to file your application
4. If you're filing LUT, please read and select all the three checkboxes for accepting the conditions prescribed in Letter of Undertaking
5. Enter the details of two independent witnesses
6. Primary Authorized signatory or other Authorized signatory can sign the Application Form
7. Once signed and filed, Form cannot be edited.