File GST Letter of Undertaking

With Senixa Legal furnish Letter of Undertaking (LUT) in GST RFD-11. Prices Starting from INR 1499/- only.

What is a Letter of Undertaking under GST?

Under GST, two choices are being provided to exporters of goods or services or both for effecting such supplies:

Submit a Letter of Undertaking or Bond (as applicable) to Commissioner of GST. In this case, there is no need to pay tax on exports and the assessee can claim a refund of GST paid on its inward supplies.
Pay IGST on exports and then after claim refund for the same.

Letter of Undertaking (LUT):

All registered taxpayers who export the goods or services will now have to furnish a Letter of Undertaking (LUT) in the GST RFD-11 form on the common portal of GSTN to make exports without payment of IGST. Letter of the undertaking has to be filed /submitted online before exporting the goods/services.

Hence, If you are engaged in the Import-Export business, then it would always be a great option to file a LUT for getting exemption from paying GST.

Advantages of filing Letter of Undertaking :

• Once you submit the Letter of Undertaking, it is valid for one whole year.

• There would be no additional compliance.

• IGST will not have to be paid on exports for a year.

Due date and validity of the Letter of Undertaking:

A fresh LUT should be filed for each new financial year. One Letter of Undertaking will be valid for one financial year. That means if you have filed a LUT for FY 2019-20, it would expire on 31st March 2020. So for FY 2020-21, a Fresh LUT needs to be filed.

Extension in the time limit of the requirement for the filing of Letter of Undertaking:

For the Financial Year 2020-21, the CBIC has extended the time limit for filing the Letter of Undertaking under GST from 31st March 2020 to 30th June 2020. and the taxpayer can continue to make the supply without payment of tax under LUT provided that the FORM GST RFD-11 for 2020-21 is furnished on or before 30.06.2020. Taxpayers may quote the reference no of the LUT for the year 2019-20 in the relevant documents.

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Documents required for filing of LUT for export under GST

LUT cover letter: request for acceptance – duly signed by an authorized person.
A LUT can be submitted by anyone registered under GST, provided they have not been prosecuted for tax evasion exceeding Rs. 250 lakh, or for any other offense under the CGST Act, the IGST Act 2017, or any other prevailing statute.
Copy of GST registration.
Pan Card of the entity.
KYC of authorized person/signatory.
GST RFD 11 form.
Copy of IEC code.
Canceled Cheque.
Authorized letter.

Steps to Furnish GST Letter of Undertaking

Step 1
Fill a checklist
Step 2
Submission and verification of documents
Step 3
LUT Submission
Step 4
Acknowledgement Generated

Fill Simple Checklist

A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.

Name Approval

Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of name for your Private Limited Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.

Registration

We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.

FAQs on LUT (Letter of Undertaking) under GST

Who should file LUT?
All the goods and service exporters should file the LUT.

Is a LUT filed once will be valid for Lifetime?
No, A fresh LUT should be filed for each new financial year.

Who has to sign the LUT application?
Any of the Authorized Signatory needs to sign and file the verification with DSC/EVC.

How would I know that the process of furnishing LUT has been completed?
After a successful filing, the system will generate ARN and acknowledgment. You will be informed about successful filing via SMS and Email and you can also download the acknowledgment as a PDF

Is it mandatory to record them manually approved LUT in online records?
It is not mandatory, but if you want to record the manually approved LUT to be available in online records then you can furnish it with an online application.

What are the consequences of non-filing of LUT?
If LUT is not filed, all exports will be treated as domestic sales and IGST will have to be paid on the same.

Still, have confusion?
Our expert will help you in choosing the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@senixalegal.com or call us @+91 9999347181.

Senixa Legal is a body comprising of professionals with intellectual capability.
We are focused in each possible way so that we can offer you the best tax planning alternatives, moving through a conservative approach towards aggressive, counting on the risk factor too so that you get the best option to choose for.