How to Use GST LUT to Verify GSTIN and Generate E-Way Bills?

Introduction

The introduction of the Goods and Services Tax (GST) in India has brought significant changes in the taxation system, aiming to streamline and simplify the process. As part of this initiative, the Government of India has introduced the Letter of Undertaking (LUT) facility, which allows registered taxpayers to export goods without paying Integrated Goods and Services Tax (IGST) upfront. This article aims to provide a comprehensive guide on how to utilize the GST LUT to verify the GSTIN and generate E-Way bills, enabling businesses to navigate the GST compliance process efficiently

What is LUT in GST?  

GST LUT (Letter of Undertaking) is a document that is issued to registered taxpayers who are engaged in the export of goods and services. The LUT is a formal commitment made by the exporter to adhere to all GST-related duties and to avoid paying GST at the time of export of the goods or services. The LUT is a declaration that the exporter accepts responsibility for adhering to all laws and rules governing the export of goods and services under the GST regime.

How to use GST LUT to verify GSTIN and generate E-Way Bills?

The steps to use GST LUT to verify GSTIN and generate E-Way Bills are listed below-:

Step 1: Verify GSTIN  

Before generating an E-Way Bill, it is essential to verify the GSTIN of the supplier and the recipient. The GSTIN can be verified on the GST portal by following these steps:

• Go to the GST portal and click on the ‘Search Taxpayer’ option under the ‘Services’ tab.
• Enter the GSTIN of the supplier or recipient and click on ‘Search’.
• The details of the taxpayer will be displayed, including the name, address, and status of the registration.

Step 2: Generate E-Way Bill  

Once the GSTIN of the supplier and recipient is verified, the next step is to generate the E-Way Bill. The E-Way Bill can be generated on the GST portal by following these steps:

• Login to the GST portal using your credentials.
• Click on the ‘E-Way Bill’ option under the ‘Services’ tab.
• Select the ‘Generate New’ option and enter the details of the consignment, such as the invoice number, date, and value.
• Enter the details of the transporter, such as the name, vehicle number, and mode of transport.
• Click on ‘Submit’ to generate the E-Way Bill.

Step 3: Furnish LUT  

If you are an exporter and want to export goods or services without paying IGST, you need to furnish an LUT. The LUT can be furnished on the GST portal by following these steps:

• Login to the GST portal using your credentials.
• Click on the ‘Services’ tab and select ‘User Services’.
• Click on ‘Furnish Letter of Undertaking (LUT)’ and select the financial year for which you want to furnish the LUT.
• Fill in the details of the LUT, such as the name of the authorized signatory and the place of submission.
• Click on ‘Submit’ to furnish the LUT.

Step 4: Verify E-Way Bill  

Once the E-Way Bill is generated, it is essential to verify the details of the E-Way Bill. The E-Way Bill can be verified on the GST portal by following these steps:

• Login to the GST portal using your credentials.
• Click on the ‘E-Way Bill’ option under the ‘Services’ tab.
• Select the ‘Verify E-Way Bill’ option and enter the E-Way Bill number.
• The details of the E-Way Bill will be displayed, including the name of the supplier and recipient, the date of dispatch, and the mode of transport.

Conclusion

In conclusion, using GST LUT to verify GSTIN and generate E-Way Bills is a simple and straightforward process. By following the steps mentioned above, exporters can export goods or services without paying IGST and generate E-Way Bills with ease. It is essential to verify the GSTIN of the supplier and recipient and verify the details of the E-Way Bill to ensure a smooth and hassle-free transaction.

Suggested Read: How LUT Simplifies GST Compliance?