GST LUT
GST LUT
GST LUT, or Letter of Undertaking, is a document utilized by exporters under India’s Goods and Services Tax (GST) framework. It allows exporters to supply goods or services internationally without paying Integrated Goods and Services Tax (IGST). Instead, exporters can claim a refund on accumulated Input Tax Credit (ITC). The LUT is valid for one financial year and must be submitted annually to the GST authorities. It simplifies export processes by eliminating upfront tax payments, thereby enhancing cash flow for exporters. Compliance with GST regulations and proper documentation are essential for availing the benefits of GST LUT efficiently.
What is GST LUT?
GST LUT stands for “Letter of Undertaking” under the Goods and Services Tax (GST) regime in India. It is a document issued to exporters allowing them to export goods or services without payment of Integrated Goods and Services Tax (IGST). Instead of paying IGST at the time of export, exporters furnish a GST LUT to undertake that they will fulfill all export requirements and claim a refund of accumulated Input Tax Credit (ITC). This simplifies export procedures by facilitating zero-rated supplies under GST, enabling exporters to compete globally and manage cash flows effectively while complying with GST regulations.
Eligibility Criteria for LUT registration
To be eligible for LUT (Letter of Undertaking) registration under the GST regime in India, exporters must meet certain criteria:
Registered Exporter: The applicant must be a registered taxpayer under GST and engaged in the export of goods or services.
No Pending Tax Arrears: The exporter should have no pending tax arrears or liabilities under GST or any other law administered by the Central or State Government.
Compliance with GST Laws: The exporter must comply with all GST laws and regulations, including filing of GST returns and payment of taxes.
Previous Record: The applicant should have a satisfactory record of compliance with export and GST laws, without any past instances of fraud or tax evasion.
Furnishing of Documents: The exporter must furnish the required documents and declarations as prescribed by the GST authorities while applying for LUT registration.
Annual Filing: The LUT needs to be submitted annually for renewal, ensuring continued compliance with export conditions and GST regulations.
Meeting these eligibility criteria ensures that exporters can avail of the benefits of LUT registration, facilitating zero-rated supplies and seamless export operations under GST in India.
Registered Exporter: The applicant must be a registered taxpayer under GST and engaged in the export of goods or services.
No Pending Tax Arrears: The exporter should have no pending tax arrears or liabilities under GST or any other law administered by the Central or State Government.
Compliance with GST Laws: The exporter must comply with all GST laws and regulations, including filing of GST returns and payment of taxes.
Previous Record: The applicant should have a satisfactory record of compliance with export and GST laws, without any past instances of fraud or tax evasion.
Furnishing of Documents: The exporter must furnish the required documents and declarations as prescribed by the GST authorities while applying for LUT registration.
Annual Filing: The LUT needs to be submitted annually for renewal, ensuring continued compliance with export conditions and GST regulations.
Meeting these eligibility criteria ensures that exporters can avail of the benefits of LUT registration, facilitating zero-rated supplies and seamless export operations under GST in India.
Expert Consultant for GST LUT Filing
Exporters can avail of the benefits of zero-rated supplies under GST by filing a Letter of Undertaking (LUT). Filing an LUT allows exporters to export goods or services without paying IGST, simplifying the process and improving cash flow. The process involves submitting an online application through the GST portal, including necessary details and declarations. Once approved, the LUT is valid for one financial year. This facility streamlines compliance and reduces the financial burden on exporters, making it an essential step for businesses engaged in international trade.
LUT Application Form
GST Registration Certificate
PAN Card
Authorization Letter
Self-Declaration
Copy of Previous LUT
Details of Export Transactions
GST Registration Certificate
PAN Card
Authorization Letter
Self-Declaration
Copy of Previous LUT
Details of Export Transactions