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LETTER OF UNDERTAKING
Exporters need to furnish Letter of undertaking (LUT) for making zero rated supply without payment of integrated tax
Eligibility to export under LUT :
The facility of export under LUT has now been extended to all registered persons who intend to supply goods or services for export without payment of integrated tax except those who have been prosecuted for any offence under CGST Act or IGST Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees.
Validity of LUT :
LUT shall be valid for the whole financial year in which it is tendered. However, in case goods are not exported within the time specified and the registered person fails to pay the amount mentioned in the said sub rule is paid subsequently, the facility of export under LUT shall be restored. As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or under the bond with the bank guarantee.
STEP BY STEP GUIDE TO FURNISH LUT
Step 1 – After LOGIN go to ‘SERVICES’ > ‘USER SERVICES’ > ‘FURNISH LETTER OF UNDERTAKING (LUT)
Step 2 – Select financial year for which LUT is applied from the drop down list
Upload the photo of letter of undertaking that has been already furnished manually for any previous periods. File uploaded should be in PDF or JPEG format with maximum file size should be 2MB
Step – 3 Following details should be filled
- Self declaration: Tick against each of the three boxes exporter undertakes
- to export goods or services supplied without payment of integrated tax within time 3 months from the date of issue of export invoice or further period allowed by the commissioner
- to observe all the provisions of the GST Act and made rules there under in respect of export of goods or services
- pay IGST in case of failure to export along with amount equal to 18% interest p.a on the amount of tax not paid from the date of invoice till the date of payment.
- Independent witness information – Witness declared in the LUT are the ones declared on the Bond / Bank guarantee.
Step – 4 Enter Place of filing. Save the form and Preview to verify for the correctness of the Form. Sign and File the Form either using DSC or EVC
On submission of the application, ARN will be generated which will also be sent at registered email and mobile of the taxpayer.
It can also be downloaded.
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