LUT FILING

LUT Filing under GST

Letter of undertaking (LUT) is the document that the user provides declaring fulfilment of all requirements under GST. It is furnished in case of export undertaken without paying IGST. Also, according to the Notification No. 37/2017 - Central Tax It is mandatory to furnish LUT to export goods or services or both without paying IGST. If the exporter fails to provide the LUT, then he has to pay IGST or provide an export bond.

What are the eligibility criteria to apply for LUT?

A person intending to supply goods/services:

     ♦ To or outside India or Places covered under Special Economic Zone

     ♦ Without paying integrated tax

     ♦ Is also registered under goods and services tax

Validity of LUT (Letter of Undertaking):

The LUT submitted is valid for the whole financial year in which it is submitted. You need to submit a new LUT for each financial year. If the goods for export are not exported within three months of Date of Invoice issue, then the Exporter is liable to pay GST along with 18% interest within 15 days. Also in case of payment for services are not received within one year for which the LUT has been submitted, the exporter is liable to pay GST @ 18% within 15 days. Failing to do so will lead to withdrawal of LUT facility and on subsequent payments, it can again be restored.

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