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 However, if the conditions with respect to exports are not fulfilled, LUT is deemed to be withdrawn until the fulfillment of conditions.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.