GST LUT Form - Letter of Undertaking Guide | Credorra

GST LUT Form

Complete professional guide to GST Letter of Undertaking (LUT) application, benefits, and compliance for export businesses

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Understanding GST LUT

GST Letter of Undertaking (LUT) is a legal document that enables exporters to supply goods or services for export without paying Integrated Goods and Services Tax (IGST), facilitating smooth export operations and improving cash flow.

What is GST LUT?

GST LUT is a legal undertaking filed by exporters to export goods and services without paying IGST upfront, ensuring compliance with export regulations.

  • Avoidance of IGST payment on export transactions
  • Required for debt-free export operations
  • Facilitates faster customs clearance
  • Valid for one financial year
  • Simplifies export compliance procedures
  • Reduces financial burden on exporters
  • Supports government export promotion
  • Mandatory for availing export benefits

Who Can Apply for LUT?

Exporters who intend to export goods or services without paying IGST during a financial year can apply for LUT under specified eligibility conditions.

  • Registered taxpayers under GST law
  • Exporters with no pending tax dues
  • Those not prosecuted for tax evasion
  • Suppliers of goods and services for exports
  • Entities with clean compliance record
  • Exporters seeking IGST exemption
  • Businesses engaged in export trade
  • Eligible exporters to avoid upfront payment

Benefits of GST LUT

Applying for LUT helps exporters maintain cash flow, minimize upfront tax payments, and avoid unnecessary interest or penalties.

  • Zero IGST payment required at export
  • Improved working capital management
  • Compliance with regulatory framework
  • Reduces risk of interest and penalties
  • Eases export documentation process
  • Encourages export promotion activities
  • Increases competitiveness in global markets
  • Supports government export initiatives

LUT Application Process

Step-by-step guide to applying for GST Letter of Undertaking efficiently and correctly through the official GST portal.

1

Eligibility Check

Verify if exporter meets all criteria for LUT application with no pending dues or compliance issues.

2

Portal Access

Login to GST portal using valid credentials and navigate to LUT application section.

3

Form Preparation

Download Form GST RFD-11 and prepare all necessary details and supporting documents.

4

Online Submission

Submit LUT application via GST Portal with digital signature or Electronic Verification Code.

5

Verification Process

Tax authorities verify application and approve LUT typically within 2-4 weeks of submission.

6

LUT Certificate

Receive LUT certificate valid for one financial year for IGST exemption on exports.

Required Documents for LUT Application

Document Type Description Mandatory/Optional
Export Contract/Indent Copy of valid export contract or purchase order Mandatory
Form GST RFD-11 Letter of Undertaking application form Mandatory
PAN Card Copy of Permanent Account Number Mandatory
Bank Details Bank account details with cancelled cheque Mandatory
Digital Signature DSC of authorized signatory Mandatory
GST Registration Valid GST registration certificate Mandatory
IEC Document Import Export Code certificate Mandatory
Export Performance Proof of export performance (if applicable) Optional

Frequently Asked Questions

Common queries about GST LUT application and benefits answered by our experts.

What is GST LUT and is it necessary for exporters?
GST LUT is a legal document allowing exporters to export goods or services without paying IGST upfront. It is necessary for IGST-free exports and accessing export benefits, improving cash flow for exporters.
How long is LUT valid and when should it be renewed?
LUT is valid for one financial year and must be renewed annually before the commencement of exports in the new financial year to continue availing benefits.
Can new exporters apply for LUT without export history?
Yes, even new exporters can apply for LUT subject to furnishing bank guarantee or other prescribed security as per GST regulations.
Is there any fee for applying for GST LUT?
No, application for GST LUT is free of cost under normal circumstances. No processing fee is charged by the GST department.
What happens if LUT application is revoked or rejected?
If LUT is revoked or rejected, the exporter must pay applicable IGST along with interest and penalties as per GST law provisions.
Can amendments be made to filed LUT application?
Yes, amendments can be made through the GST portal by submitting necessary forms with valid reasons and supporting documentation.
How does LUT impact working capital requirements?
LUT significantly reduces working capital requirements by absolving the need to pay IGST upfront on exports, improving cash flow management.
Is professional assistance recommended for LUT filing?
Yes, professional assistance ensures accurate documentation, compliance with regulations, and timely filing to avoid rejections and delays.

Contact Our GST LUT Experts

Get professional assistance for GST LUT application and ensure smooth export operations with our experienced team.

Phone Support

+91 70117 15516

Alternative Number

+91 87662 68711

Email Support

hello@credorra.com

Office Location

Dehradun, Uttarakhand

Business Hours

Mon-Sat: 9AM-7PM

Expert Support

Certified GST Professionals

Free Consultation Available for GST LUT Application

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