GST LUT Filing

Letter of Undertaking (LUT) :-

Letter of undertaking (LUT) under Goods and Services Tax (GST) is a type of document that exporters need to file to carry out export transactions without paying IGST (Integrated Goods and Services Tax) on the Exported Goods and Services.

Previously, exporters had to provide a bond and bank guarantees in order to export products or services without paying the IGST. The introduction of LUT, however, made the procedure simpler and removed the requirement for a bond or bank guarantee.

The LUT is a declaration that the exporter makes to the GST authorities that they fulfill certain requirements and will comply with the provision of the GST Act, rules and regulations. Exporters can export products or services without paying the IGST in advance by submitting the LUT, and they are also eligible to receive refunds for any input tax credits (ITC) accrued on inputs used for the export.

Eligibility Criteria for GST LUT Filing

Registered Exporter

The applicant must be a registered person under GST and must be registered as an exporter with the relevant GST authorities.

Financial Credibility

The applicant must be credible and have a satisfactory financial record. This may take into account elements like timely tax payment, correct financial statement submission, and compliance with financial regulations.

Export of Goods/services

The applicant must be engaged in a business of exporting of goods and services.

No Prosecution or Conviction

The applicant should not have ever been charged with a crime or found guilty under any law, including GST laws. They shouldn’t be involved in any fraudulent or illegal activities related to taxes or exports.

No Tax Liability

The applicant should not have any tax liability including GST, Income Tax, Customs duty, or any duties or taxes are payable to the government.

Proper record-keeping

The applicant must maintain accurate records of all of their exports, invoices, shipping bills, and other relevant documents. The GST authorities should always have easy access to these documents for inspection.

Documents Required for LUT GST Filing

Every person who is registered with the GST can present LUT provided he is not convicted of any tax evasion or other offense.