Letter of undertaking is the document that the user provides declaring fulfillment of all requirements under GST. It is furnished in case of export undertaken without paying IGST. Also, according to the Notification No. 37 /2017 – Central Tax It is mandatory to furnish LUT to export goods or services or both without paying IGST. If the exporter fails to provide the LUT, then he has to pay IGST or provide an export bond. Earlier LUT could only be filed offline at the concerned GST office. But to further ease the process the Government has made the LUT filing online.
A person intending to supply goods/services
The LUT shall be accepted by the Assistant or Deputy Commissioner having Jurisdiction over the place where the exporter does his business. The Exporter can furnish the LUT before any central or state officer till any specific administrative officer is assigned.
If your LUT for the previous period is furnished offline, then you are required to attach it by clicking choose file as shown on the screen below and continue.
Then you need to tick mark by clicking against the three boxes. By doing this, the exporter undertakes
*Interest must be paid at the rate of 18% per annum for the period From the date of issue of export invoice up to the date of payment of integrated taxes
Independent Witnesses Information: Fill the name, Occupation, and address of two independent witnesses in the boxes highlighted here
We need to declare the witnesses of the LUT on running bonds/ Bank guarantee.
Enter Place of Filing your LUT under the place of filing LUT and then click on SAVE after saving your document you can preview your Document by clicking on the preview to verify the form before submission
File the form after signing it.
We can sign the application with Digital Signature Certificate of the authorized signatory. Click on the ‘Sign and file with DSC’ a warning message box appears, click on PROCEED button. Then the system provides the application reference number
We can also submit with EVC: Click on ‘Sign and file with EVC.’ Then you will receive an OTP to your registered mobile number; you will also get an email notification for the same. Enter the OTP in the pop-up message then you will receive a warning box for submission. You need to click on PROCEED to get your application reference number.
*LLPs and companies can only use DSC for filing
Then you will get an email notification and SMS to your registered mobile number.
You can now download your acknowledgment by clicking on the DOWNLOAD option
The LUT submitted is valid for the whole financial year in which it is submitted. You need to submit a new LUT for each financial year. If the goods for export are not exported within three months of Date of Invoice issue, then the Exporter is liable to pay GST along with 18% interest within 15 days according to Section 50 (1). Also in case of payment for services are not received within one year for which the LUT has been submitted, the exporter is liable to pay GST @ 18% within 15 days. Failing to do so will lead to withdrawal of LUT facility and on subsequent payments, it can again be restored.
You can download the FORM GST RFD-11 from www.cbec.gov.in as long as it is available on the portal. Furnish the filled form to the jurisdictional Deputy/Assistant Commissioner with jurisdiction over your place of business.
Self-declaration that the conditions of the Letter of Undertaking shall be accepted unless there is specific permission granted. In such cases, a self-declaration is required by the exporter to the effect that he has not been prosecuted should serve the purpose of notification- 37/2017- Central Tax on 4th October 2017. Verification if required may be carried out on a post-facto basis.
As LUT or Bond is mandatory for export business, including exports to an SEZ unit, so it should be on the top priority list. The LUT/ Bond should be accepted within three working days after it has been received along with the self-declaration by the exporter as mentioned above. Failing to process the LUT within three working days, it shall be considered to be accepted.
In all cases, bonds shall be accompanied by a bank guarantee amounting to 15% of the bond amount.
In case of self-sealing, sealing of containers, is to be exercised under the supervision of the central excise officer having jurisdiction over the place of business. A copy of the report is to be submitted to the Deputy/ Assistant Commissioner having jurisdiction over the place of business.
There are no provisions for issuance of CT-1 form which allows exporters to purchase goods from manufacturers without paying tax under the GST regime. The transaction between the manufacturer and the exporter is like supply, and the same would be subject to GST.
Zero rating does not apply to supplies to EOUs, and there is no special exemption for them under the GST regime. Therefore they are taxable similar to any other taxable supplies. To the extent of exports, EOUs are eligible for zero-rating.