What is LUT Under GST


Letter of Undertaking is abbreviated as LUT. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid. Filing LUT is convenient than refund mode as the exporters do not wish to indulge into hassles of refunds and block their funds. The eligibility criteria to apply for LUT is comparatively relaxed than to the erstwhile system. Letter of Undertaking is filed online using the form GST RFD 11. By filing LUT, the exporter undertakes that all the requirements prescribed for this route will be fulfilled by him.

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Benefits of LUT Under GST


Exports without tax payment

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.

Saves Working Capital

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.

An Entire Financial Year Validity

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.

Simple and online process

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.

Documents required for LUT Under GST


How to Register LUT Under GST with CCA?

1. Fill the form given on the right

2. Select your package

3. Fill the company details

4. Pay the amount & done

Once you done, our expert will contact you.



    LUT Under GST (FAQs)

    1What is the threshold limit when GST Registration is compulsory?
    An aggregate turnover exceeding Rs. 20 lakh in a financial year mandates registration for a dealer or service provider under this law. However, for dealers conducting business in north-eastern states of India, an aggregate turnover exceeding Rs. 10 lakh mandates a registration. Also, there are few criteria laid down where GST Registration is compulsory irrespective of the turnover.
    2Can I apply for GST Registration voluntarily for my Business?
    Yes, anyone can voluntarily get registered under GST in the same manner as the mandatory registration is carried out and notified by the Government.
    3How goods or services can be exported from India?
    Exports of goods and services are done either with the payment of applicable GST or without the payment of GST. In the first portion, the taxes paid are refunded to exporters subject to conditions of exports. For exports without payment of taxes, the exporters are required to file Letter of Undertaking.
    4When is the Letter of Undertaking required to be filed?
    If the exporters wish to opt for exports without the payment of taxes, the Letter of Undertaking is required to be filed. First time filing can be made any time before exporting without taxes. However, if the exporter wants to continue the same to the next financial year, it must be filed before the commencement of the financial year.
    5Who is eligible to file Letter of Undertaking?
    Earlier criteria of turnover and inward receipts were prescribed for filing LUT under GST. However, now any exporter willing to export without paying the taxes can file Letter of Undertaking under GST online. Here,
    6Whether the filing of bond is required for exporters?
    No, the requirement to file a bond is eliminated. For exports without payment of taxes, online Letter of Undertaking is required to be filed.
    7How the letter of Undertaking is required to be filed under GST?
    Since the financial year 2018-19, the Letter of Undertaking is required to be filed on an online portal of GST Network using GST credentials. The undertaking is executed on the duly stamped paper, which is submitted through the online portal.
    8What is the validity of Letter of Undertaking filed?
    Letter of Undertaking will be valid for the whole financial year in which it is filed. However, if the conditions with respect to exports are not fulfilled, LUT is deemed to be withdrawn until the fulfillment of conditions.
    9Whether the manual submission of LUT is required?
    No, the physical submission of Letter of Undertaking is not required now as the ARN generated in the Acknowledgment is deemed as acceptance of the LUT.
    10Whether re-filing of LUT is required to continue the benefit?
    Yes, the Letter of Undertaking is valid for the financial year in which it is filed. Hence, the LUT must be applied for in the beginning of every financial year.

    More Questions?

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    More Questions?

    Contact us for additional assistance