A Letter of Undertaking (LUT) is a document that allows exporters to supply goods or services without paying GST (Goods and Services Tax) upfront. Instead of paying the GST and then claiming a refund, exporters can furnish an LUT to the GST authorities and carry out their exports without payment of IGST (Integrated GST).
To file an LUT, the exporter must submit an application in Form GST RFD-11 on the GST portal. The application must be accompanied by supporting documents, such as the company's PAN card, bank statement, and copy of the export order.
Once the application is filed, the GST officer will review the documents and may ask for additional information or clarification. If the officer is satisfied with the application, they will issue an LUT acceptance order, and the exporter can then download the LUT from the GST portal.
The LUT file typically contains the following information:
Name and address of the exporter
GSTIN (Goods and Services Tax Identification Number) of the exporter
Period for which the LUT is valid
Undertaking to fulfill the conditions for availing LUT
Declaration of no proceedings pending against the exporter for any violation of GST laws
Signature of the authorized signatory of the exporter
It is important to note that the LUT must be filed before the first export under GST is undertaken. Also, the LUT remains valid for a specified period and must be renewed before the expiry date to continue availing the benefit of exemption from payment of IGST on exports.