GST LUT FILING

GST LUT Filing

In order to understand the concept of GST LUT filing, first, we need to understand the term “IGST – Integrated Goods and Services Taxes”. IGST, in simple terms, can be understood as one type of GST which is charged when there is movement of goods and services from one state to another. Centre would levy IGST which would include CGST and SGST based on all inter-state transactions of goods and services. GST LUT filing is also named as Export bond filing, which is a letter of undertaking where the exporter announces that he/she would accomplish all the requirements prescribed under GST while exporting without making IGST payment. As per new regime, all exports are imposed with IGST, which can later be reclaimed via a reimbursement against the payment of tax. LUT saves exporters the effort and time spent in chasing a refund and eradicates the blocking of capital by way of payment of taxes. LUT filing online is super-easy and quick.

In order to get LUT under GST, the GST holder must ensure that he/she has LUT cover letter which is a request for acceptance duly signed by an authorized signatory with all the required documents such as PAN card, KYC details, GST registration and Cancelled cheque. The LUT filing remains valid only till 1 year from the submission date.

Benefits

• By filing GST LUT, exporter not required to pay taxes for transferring their goods and services.
• One GST LUT filing remains effective for complete financial year
• Undertaking helps in saving capital jammed in claiming refunds.
• LUT filing is time-saving and cost-effective

Documents Required for Limited Liability GST Registration

• Cover Letter requesting acceptance of LUT: A cover letter addressing to Assistant/Deputy Commissioner of GST of respective division required on the top of application.
• A copy of GST Registration Certificate
• Form GST-RFD-11- Original Two Set
• Original Two Sets of Annexure of Letter of Undertaking (LUT) on Letter Head of entity. Signatures of all undertaker (s) should be verified by Bank Manager. It also require two witnesses
• Such annexure of LUT should be notarized
• Attach personal IDs of both witnesses. Ensure that name and address on personal IDs must match with the detail mentioned in LUT.
• Attach Incorporation documents of entity. (e.g. Partnership deed for Partnership firm, Certificate of Incorporation for Company/LLP, etc.)
• PAN of Entity
• Copy of Board Resolution/Authorization Letter authorizing director/ partner to file application.
• Entity has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws for any amount of tax evasion
• It’s eligible for LUT in terms of export sales and corresponding collections during the previous year. (This is not required after 04.10.2017 wherein turnover requirements waived off for exporters)
• Prepare a summary of invoices raised against export sales and get it certified from Chartered Accountant. Attach all invoices of export sales (This is not required after 04.10.2017 wherein turnover requirements waived off for exporters)
• Prepare a summary of collections against export sales during the year and get it certified from Chartered Accountant. Attach all evidences for such collections (e-brc or bank statement). (This is not required after 04.10.2017 wherein turnover requirements waived off for exporters)
• Copy of IEC code, if available.