In the following article, we will be discussing about the knowledge you need to acquire regarding GST LUT filing,
LUT stands for Letter of Undertaking. According to the CGST Act, 2017, it is the document that is required to be filed by exporters to export goods or services such that they don’t have to pay the taxes. All exports are a subject to IGST under the new GST system, in which it can be reclaimed later by a refund against the paid tax. Having difficulties faced by exporters in processing tax refunds, an alternative option of LUT eases their efforts by eliminating blocking of funds.
As per CGST Rules, 2017, a registered person can file LUT in form GST RFD-11 and export goods without paying IGST. LUT can be applied if they:
After logging into your profile on the GST portal, follow these steps:
The benefits are: