GST LUT Certification

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GST LUT Certification enables our company to export goods with ease, ensuring tax exemption and boosting international trade opportunities.

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Filing of LUT in GST for Exporters

Are you an exporter looking to simplify your operations and ensure tax-free exports? The Letter of Undertaking (LUT) in the GST framework is a key document that enables exporters to engage in the export of goods and services without paying Integrated Goods and Services Tax (IGST) at the time of supply. This guide explains the benefits and steps involved in the filing process.

What is LUT in GST?

The Letter of Undertaking (LUT) serves as an essential tool for exporters under the Goods and Services Tax (GST) regime. It allows exporters to carry out their business transactions without having to pay the IGST at the time of export, helping to streamline export processes and improve cash flow.

GST LUT Form for Exporters

To avoid paying IGST on export transactions, exporters must file the GST LUT Form (RFD-11), which is available on the GST portal. This form is required for exporting goods or services without the immediate need to pay taxes.

Eligibility Criteria for LUT Registration

Eligibility Criteria	Details
GST Registration	The exporter must be registered under GST.
Export Intent	The exporter must intend to export goods or services either to foreign countries or Special Economic Zones (SEZs).
Prosecution for Tax Evasion	The applicant should not be facing prosecution for tax evasion exceeding ₹250 lakh.
Tax-Free Supply	The exporter intends to supply goods or services without IGST.

Understanding the LUT Bond

An LUT is valid for one financial year. For subsequent years, exporters must submit a new LUT. If the terms of the LUT are violated, a bond may be required to continue tax-free exports. The bond is applicable in the following cases:

Scenario	LUT Requirement
Exports to SEZ	LUT or Bond required for tax-free supply to SEZs.
Export of Goods	LUT or Bond required for tax-free export of goods.
Export of Services	LUT or Bond required for tax-free export of services.

Documents Required for GST LUT Registration

LUT Application Letter: Signed request letter from an authorized person.
Eligibility Proof: Ensure no serious tax evasion cases are pending.
GST Registration Proof: Copy of your GST registration certificate.
PAN Card of the Entity: Identification of the business entity.
Authorized Person's KYC: Proof of identification and address of the authorized signatory.
GST RFD-11 Form: Application form required for LUT registration.
IEC Code Copy: If involved in export activities.
Canceled Cheque: From your bank account for verification.
Authorized Signatory Letter: Granting power to the authorized signatory.

Advantages of Filing LUT for Exporters

Tax-Free Exports: Export transactions can be carried out without IGST payment, unlike the alternative, where taxes are paid and later refunded.
Simplified Process: The LUT filing process simplifies the tax refund process and provides smoother export operations.
Improved Cash Flow: Avoiding upfront tax payments helps maintain financial liquidity, especially for SMEs.
Long-Term Validity: Once filed, an LUT remains valid for an entire financial year, reducing the need for frequent re-submissions.

Key Reminders about LUT Bond in GST

Point	Details
Validity Period	An LUT remains valid for one year from the submission date.
Conditional Acceptance	LUT is accepted under specific conditions. Failing to meet these terms may require a bond.
Bond Requirement	If the LUT is not applicable, a bond with a bank guarantee may be required.
Bank Guarantee	The bank guarantee should cover 15% of the anticipated tax liability.
Submission	LUT forms must be submitted on the registered entity’s letterhead, signed by authorized personnel.

Why Choose Hiva Professionals?

Expertise in GST Compliance: Hiva Professionals have in-depth knowledge of GST regulations and offer tailored solutions for LUT filings, ensuring full compliance.
End-to-End Support: From document preparation to online submission, our team provides comprehensive support to make the filing process seamless.
Time and Cost Efficiency: We streamline the LUT filing process, saving you time and resources, so you can focus on growing your export business.
Personalized Consultation: Our experts will guide you through the entire process, helping you understand the intricacies of LUT registration and GST regulations.
Quick Turnaround: We ensure that your LUT filing is processed quickly and efficiently, so you can start benefiting from tax-free exports right away.

Let Hiva Professionals simplify the GST LUT filing process for your business, ensuring smooth and efficient export transactions. Reach out to us today and experience hassle-free GST compliance!