To export goods or services without paying IGST (Integrated Goods and Service Tax), all registered taxpayers who do so must submit a Letter of Undertaking (LUT) in GST RFD-11 form via the GST portal. Today this article will focus on “What is Letter of Undertaking under GST?”, Process for filling LUT under GST, Documents required for LUT under GST, and Eligibility criteria for filing LUT under GST (Goods and Service Tax).
Exporters might use a letter of undertaking to export products or services without paying taxes. All exports are subject to IGST under the new GST system, which can later be reclaimed via a refund against the tax paid. Exporters can avoid the hassle of seeking a refund and avoid the blockage of cash through tax payments by using a LUT (Letter of Undertaking).
All GST-registered exporters of goods and services must file a GST LUT. Exporters who have been charged with a crime or committed tax evasions totaling more than INR 250 lakhs under the CGST Act, the Integrated Goods and Services Act of 2017, or any other applicable legislation are ineligible to submit a GST LUT. They would need to provide an export bond in these circumstances.
Any registered person may submit an export bond or LUT under GST RFD 11 in accordance with the CGST Rules, 2017 without having to pay the integrated tax. They may apply for LUT if;
Important Note:
To export products, services, or both without paying IGST, LUT must be provided. Exporters are required to pay IGST or post an export bond if they don’t furnish the LUT. In the past, LUT could only be submitted in person at the relevant GST office. But the government has made LUT filing online in order to make the procedure more simpler.
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