1. LETTER OF UNDERTAKING:

 

Any registered person who intends to supply goods/services to outside India without payment of integrated tax (IGST) is required to furnish Letter of Undertaking (LUT) in FORM GST RFD- 11.Export without the payment of tax can be made only after filing a bond or Letter of Undertaking (LUT) as applicable to exporter.

 

The government of India has released few notifications regarding the filing of bond and LUT in the case of certain specified people. Exporters can make the payment of IGST at the time of export and then claim the refund later.

 

2. ELIGIBILTY FOR EXPORT UNDER LETTER OF UNDERTAKING:

 

Registered person(exporter) under GST who are engaged in export activity are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws.

 

3. WHAT IS EXPORT BOND?

 

Entities who are not eligible to submit Letter of Undertaking (LUT) is required to furnish an export bond along with bank guarantee.

 

Also, exporters can furnish a running bond, so that export bond need not be executed for each and every export transaction. If, the outstanding tax liability on exports exceeds the bond amount at any time, then the exporter must furnish a fresh bond to cover the additional liability. Export bonds and letter of undertaking can be submitted to the jurisdictional Deputy Commissioner or Assistant Commissioner of the concerned jurisdiction.

 

4. PROCEDURE FOR FILING LETTER OF UNDERTAKING UNDER GST

 

Filing of LUT has been made online through the GST Portal. You can follow the steps below to file LUT online:

 

1. Login to the GST Portal

 

2. Go to menu bar and select ‘Service’ option. Under ‘Service’ option go to ‘User Service’ option’ and select the Tab “Furnishing Letter of Undertaking”

 

3. Form GST RFD-11 will display

 

4. Select the Financial Year for which period you want to furnish the LUT

 

5. You can also upload LUT that belong to an earlier period by clicking on the choose file option and uploading the LUT file

 

6. If you are filing LUT, select all the three check boxes for accepting the conditions as prescribed

 

7. In name, address and occupation of the independent witnesses section, enter name and address of two witness

 

8. In the Place field, enter the place where the form is filed

 

9. Select the name of Primary Authorized signatory who will sign the Application form

 

10. Then save the form and retrieve later

 

11. Once the Form is signed and filed, it cannot be edited

 

5. REFUND UNDER GST

 

Exporter has benefit of paying IGST and then claiming refund on the same under GST laws. This deal is made easy enough for the exporters to promote the export and boost them to increase their services. Also, there is no need for filing refund application instead, shipping bill filed with customs by the exporter for refund claiming if:

 

1. The person carrying export properties (goods) has filed an export patent or export general manifest.

 

2. The person should have filed the returns GSTR-3B.

 

If the exporter fails to export goods or services or fail to receive payment for exports within the stipulated period prescribed by the government, and does not pay the IGST within 15 days from such prescribed period, the facility of export without payment of IGST will be withdrawn till the time the tax paid.

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