Exporters of products or services must provide a Letter of Undertaking (LUT) in the GST system.

*Subject To Change On Market Conditions

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For exports to be made without the payment of IGST, all registered taxpayers who export the goods or services must now submit a Letter of Undertaking (LUT) in GST RFD-11 form on the common GSTN portal. Prior to exporting the products or services, the letter of undertaking must be filed or submitted online.Therefore, filing a LUT to obtain a GST exemption will always be a wonderful alternative if you are involved in the import-export sector.

submit a LUT or a bond (as appropriate) to the GST Commissioner. In this situation, there is no need to pay export tax, and the assessee is eligible to receive a refund of the GST it paid on its inward supplies.
IGST must be paid on exports before a refund may be claimed.

Benefited from LUT under GST

Lowers the Price of Exports

Regular exporters gain a lot from reporting LUT online since it saves time compared to other methods of reimbursement. The amount is kept in reserve during this time in the form of an overdue refund. In this manner, the capital is available for use for other significant reasons. Additionally, export prices are reduced.

Easy and Fast online Process

LUT submission and acceptance have both been done online from April 2018. The applicant does not have to show up in person for approval in front of the officials. A few important documents can be uploaded to the internet to finish the process.

Exporter can Export goods without Paying Tax

An exporter may export products or services tax-free if they submit a LUT under the GST. Before requesting a refund if the LUT is not filed, the exporter must pay the applicable tax while exporting in order to be eligible for zero-rated exports.

LUT is valid for whole Fiscal Year

For the whole fiscal year in which it was filed, the Letter of Undertaking is valid. Because of this, unlike the return process, an exporter does not need to follow all the formalities each time an export consignment is finished.

Return of Integrated Goods and Services Tax (IGST) paid on Exports

The exporter's shipping invoice is by itself a claim for reimbursement. The exporter adds IGST at the appropriate rate to the invoice for export (rates specified for different goods and services). You can request a refund for the following two items after paying the IGST:

IGST paid on goods or services exported; input tax credits for goods and services not utilised.

Documents Checklist

Documents required for LUT under GST

Any GST-registered person who has not received a death sentence for tax evasion of more than Rs. 250 lakh or for any other offence may submit a LUT.