Are you an Exporter with LUT?

Are you an Exporter with LUT?

Read on…

Letter of Undertaking or LUT is a declaration filed by the exporters / deemed exporters for enabling export / deemed export without payment of tax. If you have submitted LUT, you will be eligible for effecting export of goods & services without payment of IGST. In this article, we discuss the major FAQs relating to LUT.

Who shall submit Letter of Undertaking (LUT)?

LUT can be submitted by any registered person under GST who wish to effect exports or deemed exports during a financial year.

What is the benefit of furnishing LUT?

If LUT is furnished within the prescribed form and manner, before effecting the export or deemed export, the registered person need not pay IGST on such exports or deemed exports. In the absence of LUT, any export or deemed export can be effected only by paying IGST.

When should a registered person furnish LUT?

To be eligible for the benefits of LUT, it shall be furnished before effecting the exports / deemed exports.

Should I furnish LUTs for each export / deemed export?

No. Once a LUT is furnished, it is valid for that financial year. However, if the registered person want to continue the benefit for the succeeding financial year, he shall renew the same before the commencement of the next financial year.

How to furnish LUT?

LUT to be furnished electronically through the GST portal. The Government has prescribed Form RFD – 11 as the form of LUT. The LUT application may be either signed using Digital Signature of the applicant or through EVC verification. Also, it shall be witnessed by two independent persons, whose details should be mentioned in the LUT application itself.

What is the due date for furnishing LUT for FY 2021-22?

The LUT for FY 2021-22 should be applied before 31st March, 2021. If you are already holding an LUT for FY 2020-21, the copy of the same shall be uploaded along with the application.

What is the structure of LUT?

LUT is a self declaration by the registered person undertaking the following –

  • Export of goods/services will be completed within a period of three months from the date of issue of Export invoice or further period allowed by the Commissioner if any.
  • To abide by GST law in respect of exports
  • To pay IGST along with Interest, if failed to Export

(Interest must be paid at the rate of 18% per annum for the period From date of issue of export invoice upto date of Payment of IGST)


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