LUT is an essential document that allows exporters of goods and services to export goods and services without the payment of GST.
In this article, we will explore the meaning of LUT, Purpose, Eligibility and procedure to file LUT for 2023-24.
Table of Contents
What is LUT (Letter Of Undertaking)?
LUT refers to Letter of Undertaking given by an exporter to the tax authorities that he will comply with all the requirements prescribed under the GST while exporting goods or services without paying IGST.
Purpose of LUT
LUT can be used for the below purposes:
1.Zero rated supply to SEZ without payment of IGST.
2.Export of goods to a country outside India without payment of IGST.
3.Providing services to a client outside India without payment of IGST.
Eligibility to file LUT
To be eligible to file LUT, an exporter must meet the below criteria:
- The exporter must be registered under GST and have a valid GSTIN.
- He/ She must have business involving export of goods and services and a good track record of co adherence to relevant export laws
- The taxpayer must not have any pending tax liability including arrears or dues for the previous financial years.
How to file LUT for 2023-24?
Below are the steps to file LUT for FY 2023-24
1.Official GST Website
Go to the official GST website https://www.gst.gov.in/
2.GST portal Login
Login to the GST portal with your credentials.
Follow the path: Under dashboard>Service>User services>Furnish LUT
4. Form GST RFD-11
You will see form GST RFD-11. Select the financial year for which you want to apply LUT from the drop down.
5. Upload Previous LUT
If you have already filed LUT for the previous financial year, you may upload the same by clicking on the Choose file button. Note that the GST portal allows only pdf and jpg formats and the file size should not exceed 2MB.
6. LUT Declaration
Select the check boxes to self-declare that you agree to below conditions.
Provide 2 witness names along with their address and occupation.
8.Sign and file with DSC or EVC
Select the primary authorized signatory from the drop down. And Sign with DSC or EVC and file LUT.
LUT Application Status
Below list provides the list of LUT Application Status:
|LUT Application Status||Meaning|
|Submitted||Status of LUT application after Taxpayer submits the application successfully.|
|Pending for Clarification||Status of LUT application after LUT Processing officer issues notice for seeking clarification.|
|Pending for Order||Status of LUT application after Taxpayer submits the reply for notice within 15 working days Or Taxpayer does not submit the reply for notice after completion of 15 working days and then GST Portal changes the status from pending for clarification to pending for order.|
|Approved||Status of LUT application after Tax Official accepts the undertaking furnished by Taxpayer.|
|Rejected||Status of LUT application after Tax Official rejects the undertaking furnished by Taxpayer.|
|Deemed Approved||Status of LUT application in case Tax Official doesn’t take any action within 3 working days.|
|Expired||The status of the LUT application will get changed to Expired at the end of the respective FY.|
1. What is the due date to file LUT for 2023-24?
The due date to file LUT for FY 2023-24 is 31st March 2023.
The Letter of Undertaking (LUT) plays a significant role in facilitating the export process and providing relief to exporters from paying taxes at the time of export.