"GST Letter of Undertaking (LUT) "
It is mandatory to issue LUT to export goods Or provide services or both without paying IGST” Don’t leave gap between these two lines
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It is mandatory to issue LUT to export goods Or provide services or both without paying IGST” Don’t leave gap between these two lines
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LUT meaning is Letter of Undertaking. It is a document where the taxpayer declares that he has completed all the GST obligations.it is issued in case of export undertaken without paying IGST. It is mandatory to issue LUT to export goods or provide services or both without paying IGST. If any exporter does not have LUT then he will have to pay ISGT or give an export bond.
If your business is engaged in exports, filing a GST LUT (Letter of Undertaking) is a crucial step in ensuring that your exports are zero-rated under GST regulations. However, the process of filing a GST LUT can be complex and time-consuming, taking away valuable resources from your core business operations. Law Samadhan offers a comprehensive GST LUT filing service that takes care of all the necessary documentation and compliance requirements.
After filing the LUT the exporter can export the good and services without paying the tax otherwise they have to pay tax first and then claim the refund.
The procedure of filing LUT for getting refund is easy as compared to other lengthy procedures.
The procedure of filing the LUT is an online process. The whole process is online can be completed by submitting required document and this saves the time.
General procedure to get the refund is time consuming and the refund is blocked sometime in the form of due refund.by filing the refund through LUT the refund process is fast and there is no blockage of refund.
• The taxpayer must never be prosecuted as per CGST act or IGST act or any other law for the tax exceeding Rs 2.5 crore.
• The LUT should be provided on the letterhead of the person or company registered under GST. LUT is given under GST rfd – 11 form can be issued by person authorized by company or proprietor.
• If any taxpayer fails to pay tax as given under CGST act, the exporting service is withdrawn till they pay out IGST.
Note: - The LUT is valid for one complete financial year.
• Pan card of the exporter
• KYC of signatory through pan and Aadhar card
• At least two witnesses and their PAN and Address proof
• GST registration is required
• Import export code registration is required
• Cancelled cheque of the exporter
GST LUT filing is the process of submitting a letter of undertaking to the government, stating that a business will not claim input tax credit (ITC) and will only pay GST on a reverse charge basis. It is important as it allows businesses to export goods or services without paying GST upfront.
Businesses that export goods or services, and are not in a position to pay GST upfront, are eligible for GST LUT filing.
The GST LUT filing process usually takes about 3-5 working days, after the submission of all required documents and information.
Not filing GST LUT can lead to penalties and fines, and may result in the cancellation of GST registration.
Yes, you can revoke your GST LUT filing once it has been submitted, but it is subject to the laws and regulations of the GST department.