Apply for Letter of Undertaking (LUT) for Exports under GST
Planning to step your foot into the international market? You are off to a great start. To start an export business, first, you need to understand what exports under GST are? What is Letter of Undertaking? Under the GST regime, exports and imports both are covered by IGST (Integrated Goods and Services Tax) Act.
LUT is an undertaking which is furnished by the exporters to the government, to ensure that exporter will comply with all the rules and regulations for export. If the exporter chooses to provide LUT, he does not have to pay tax. While, if exporter does not furnishes LUT, he has to pay IGST and he can claim the refund later on. Letter of Undertaking for export under GST is filled in its prescribed format through FORM GST RFD-11 along with other relevant documents.
As per the latest amendments, LUT in GST needs to be submitted online, and no physical submission of LUT to the Jurisdictional Office is entertained. As per pervious rule, any exporter who is a status holder as prescribed in Foreign Trade Policy 2015-2020 or the one who in preceding financial year has received a minimum foreign inward remittance of 10% of export turnover, amounting to not less than Rs. One crore only can avail the facility of LUT (this is no more applicable, any exporter irrespective of turnover can apply for LUT). LUT for export under GST are valid for not more than a year and once expired, exporter needs to re-submit it. As soon as Application Reference Number (ARN) is generated after online submission of LUT, it is deemed to be accepted.
At Afleo, our Business Consultants will solve all your queries regarding LUT under GST which will help you have a proper understanding of exports and its laws. With us, you can get Letter of Undertaking submitted to the concerned authority with ease. Our team puts the consumer first and works meticulously to ensure that documents are filled correctly and swiftly. Afleo is leading legal solution provider in Mumbai, Delhi, Chennai, Hyderabad, Bangalore and across India with 500+ LUT Filings per month and total figures are crossing 5,000+