GST LUT (Letter of Undertaking)

The GST LUT is governed by the Central Goods and Services Tax Act, 2017, specifically Rule 96A of the CGST Rules, 2017. This rule allows a registered person to export goods or services without payment of IGST by furnishing a Letter of Undertaking (LUT) in FORM GST RFD-11. The LUT is valid for one financial year and must be renewed annually.

The GST LUT is filed with the GST department through the common GST portal: www.gst.gov.in. The application is processed by the jurisdictional GST officer. No physical submission is required; the LUT is submitted online and is usually accepted instantly.

The process for filing a GST LUT is entirely online. Step 1: Log in to the GST portal with your credentials. Step 2: Navigate to 'Services' > 'User Services' > 'Furnish Letter of Undertaking (LUT)'. Step 3: Fill in the required details in FORM GST RFD-11, including the financial year for which the LUT is being furnished. Step 4: Submit the form using a valid Digital Signature Certificate (DSC) or E-signature. Step 5: Upon successful submission, a reference number is generated. The LUT is deemed accepted unless rejected within 3 working days.

The primary form for GST LUT is FORM GST RFD-11. This form requires details such as the applicant's name, GSTIN, financial year, and a declaration that the exporter will comply with the conditions of Rule 96A. No supporting documents are required at the time of filing, but the exporter must maintain records of exports.

Any registered person under GST who intends to export goods or services without payment of IGST is eligible to file a GST LUT. However, the following conditions apply: (a) The person must not have been prosecuted for any offence under the CGST Act or any other law within the preceding 5 years; (b) The person must not have been convicted for an offence involving tax evasion or fraud. If these conditions are not met, the exporter must furnish a bond instead of an LUT.

The GST LUT is typically processed within 3 working days from the date of submission. If no objection is raised by the proper officer within this period, the LUT is deemed accepted. The LUT is valid for the entire financial year for which it is furnished. No timeline for export completion is prescribed, but the exporter must file returns and pay tax if conditions are not met.

There is no fee prescribed for filing a GST LUT. The process is free of cost on the GST portal. However, if a bond is required instead of LUT, the bond must be executed on non-judicial stamp paper of appropriate value as per state law (typically Rs. 100 to Rs. 500). The following table summarises the government-prescribed fees: