Easy steps for filing Letter of Undertaking (LUT) Under GST for Exports

Most of the registered person wants to avail the option of export without payment of IGST but confused on the process, documentation. The detail in our blog will help you in understanding the process comprehensively :

(1) Any registered person availing the option to supply goods or services for export without payment of IGST shall furnish, prior to export,

  • A bond or
  • A Letter of Undertaking

The format is given in Page 31-33 of GOI resource to the jurisdictional Assistant/Deputy Commissioner.

Inside bond and LUT the exporter conveys that he is binding himself to pay the tax along with the interest specified under Section 50(1) within a period of —

CASE DAYS SCENARIO
1 Within a period of 15 days after expiry of 3 months. If 3 months have passed after issue of invoice and goods are not exported yet.
2 Within a period of 15 days after expiry of 1 year. If 1 year has passed after issue of invoice and the invoice amount in convertible foreign exchange not credited.

 

(2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs which is Under progress currently and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.

(3) Where the goods are not exported within the time specified in above table and the registered person fails to pay the tax and interest amount mentioned in the above table , the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person.

With effect from 04th October, 2017 through Notification LUT/ Bond for Exporters GOI has given following clarification.

All Exporters allowed for LUT

The facility of export under LUT has been now extended to all registered persons who intend to supply goods or services for export without payment of IGST 

Who are not allowed for LUT

Who have been prosecuted for any offence under the CGST Act or the IGST Act, 2017 or any of the existing laws and the amount of tax evaded is 2,50,000 or more.

Documents for LUT

LUT should be on the letter head of company along with following documents :

  1. Letter of Under Taking (Annexure 1.)
  2. Listing of address located in (Name of state ) for GSTN No. …………………..(Annexure 2)
  3. Copy of GSTN along with Additional place of business (Annexure 3).
  4. Circular no. 8/8/2017-GST dated 04th October, 2017 issued relating to letter of undertaking for exports (Annexure 4)
  5. POA Copy of Authorized Signatory (Annexure 5)
  6. Pan Card Copy of Company (Annexure 6)
  7. Pan Card Copy of Authorized Signatory (Annexure 7)
  8. Passport copy of Authorized Signatory (Annexure 8)
  9. Witness Proof Photo ID Proof (Annexure 9)
  10. BRC’s/ FIRC More than 1 Cr. To prove that export realization were more than 1 Cr in 2016-17, if yes (Annexure 10)
  11. Copies of Export Bill/Invoice (Annexure 11)
  12. Undertaking/ declaration on letter (Annexure 12)

Request you please acknowledge the receipt of this letter.

Conclusion

These clarifications bring much needed relief for the exporters with regard to export without payment of IGST. Exports had come to a halt in the absence of clarity on procedure for submission of bond/ LUT for exports. While exporters have option to export by filing of LUT/ Bond or pay IGST and claim refund.

References

GST Forms for Exporters

Notification for Exporters on 4th Oct, 2017