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GST Letter of Undertaking

What is GST LTU

  • Letter of Undertaking (LUT) Overview :
  • Declaration of fulfillment of all GST obligations.
  • LUT for IGST-Free Exports :
  • Provided when exporting without paying IGST. Required under Notification No. 37/2017 – Central Tax.
  • LUT Filing Process :
  • Mandatory for tax-free exports; failure requires IGST payment or export bond.Previously in-person submission, now accessible online.

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Who is eligible to use LUT?

Exporting businesses with GST registration can utilize LUTs. However, those prosecuted for tax evasion involving Rs. 2.5 crores or more are ineligible for LUT submission.

  • LUTs remain valid for one year, expiring at the financial year-end. Exporters need annual renewal, and failure leads to privileges revocation, requiring the submission of bonds
  • All assesses, including tax evaders of Rs. 2.5 crores or more, must submit bonds for IGST-free exports. Online submission of LTU is available on the GST portal.
  • Manual completion of bonds is mandatory, applicable for transactions like zero-rated supplies to SEZ, IGST payment on goods exported, and providing IGST-free services to clients abroad.

    • How to complete an LUT on the GST portal?

    To furnish a Letter of Understanding (LUT) on the GST Portal/GSTN, follow these steps

    Part 1 :

    Navigate to the official GST Portal, and proceed by logging in with your credentials to access the platform for various tax-related activities and services.

    Part 2 :

    To access the 'Furnish Letter of Undertaking (LUT),' go to the 'SERVICES' tab, and then click on 'User Services.' This navigation ensures a seamless LUT submission process.

    Part 3 :

    Complete details on the Letter of Undertaking Form/GST RFD-11 on-screen. Ensure:Self-Declaration: Tick all three boxes. Submit details to impartial witnesses.

    Part 4 :

    Select a file location, click 'SAVE,' and 'PREVIEW' to review the form accurately. Keep in mind, once signed/submitted, the form cannot be amended at this stage.

    Part 5 :

    Choose the relevant financial year, like 2021-22, from the 'LUT Applied for Financial Year' drop-down menu when applying for the Letter of Undertaking (LUT).

    Part 6 :

    Submit the form using DSC Sign with the authorized signatory's Digital Signature Certificate. EVC Opt for 'SIGN AND FILE WITH EVC,' receive OTP for submission.

    Private Limited Company Registration Process

    Get Your Business Incorporated. List below are the documents required for incorporation.

    STEP : 1

    • Apply for a DSC : A (DSC) is the digitalized signature of shareholders/directors, encrypted into a USB token for secure transactions. Without DSC, filing forms with the (ROC) and the MCA is not possible.

    STEP : 2

    • Director Identification Number : Acquiring the Director Identification Number (DIN) enables the submission of application forms to the Registrar of Companies (ROC) after obtaining the Digital Signature Certificate (DSC).

    STEP : 3

    • Name Availability Checking : During the name availability check, it is vital to ensure the company name stands out, avoiding any similarities with existing companies or trademarks.

    STEP : 4

    • Documentation : Various documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), are required for incorporation. Verification by a Chartered Accountant is mandatory.

    STEP : 4

    • Issue of Certificate : Upon approval, an incorporation certificate is issued, specifying the allotted PAN & TAN, and a Corporate Identity Number (CIN) is assigned as per Ministry of Corporate Affairs records.