LUT Filing

LUT Filing

How to furnish LUT in RFD-11 on GST Portal

LUT is an acronym for the letter of undertaking used while exporting goods. The article covers this in detail.

What is LUT and why is it used?

All registered taxpayers who export the goods or services will have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the GST portal in order to make exports without payment of IGST.

When to apply/file an LUT and what was the scenario before GST?

Letter of undertaking has to be filed /submitted online before exporting the goods/services. Prior to this, exporters had to manually submit the filled and signed RFD-11 on Business letterhead in duplicate –
One to the Jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business where the verification with the Export documents happens through ICEGATE medium
Another along with the Export documents to the Customs clearing authority.
Just like the earlier excise regime, this led to exporters losing considerable time and operating expense on this compliance. Eventually, this process has now been rationalised and made simple & quick, giving transparency in the entire process of exports by an exporter to all the stakeholders involved. Note that the furnishing of Bond has to be on a non-judicial stamp paper and so needs a manual submission.