Letter of Undertaking (LUT)
Original price was: ₹2,500.00.₹1,599.00Current price is: ₹1,599.00. (incl. of taxes)
Summary
- Discussion and collection of basic Information and required documents.
- Online apply of LUT
- Sharing Acknowledgment with ARN.
Letter of Undertaking (LUT) is a document submitted by registered taxpayers who export goods or services without paying IGST. LUT allows businesses to export goods or services without paying IGST upfront, subject to the condition that they will pay the IGST later, when they file their GST returns.
The LUT is a self-certification by the exporter that they will comply with all the GST rules and regulations applicable to exports. The LUT is valid for a period of one year.
The benefits of using a LUT include:
- Cash flow benefits: LUT allows businesses to export goods or services without paying IGST upfront, which can provide them with much-needed cash flow.
- Simplified compliance: LUT simplifies the compliance process for exports, as businesses do not have to file separate IGST returns for exports.
- Reduced risk: LUT reduces the risk of penalties for businesses that export goods or services without paying IGST upfront, as they are only required to pay the IGST when they file their GST returns.
The following are the requirements for obtaining a LUT:
- GST registration: The exporter must be registered under the GST.
- Valid LUT form: The exporter must submit a valid LUT form.
- Proof of export: The exporter must submit proof of export, such as a shipping bill or an airway bill.
The LUT can be obtained online through the GST portal. The LUT will be issued by the GST authorities after the required documents are submitted and the application is processed.
The LUT is a valuable tool for businesses that export goods or services. It can provide businesses with cash flow benefits, simplified compliance, and reduced risk.
Here are some of the key points to remember about LUTs:
- LUTs are only available for exports. LUTs cannot be used for supplies made domestically.
- LUTs are valid for a period of one year. Businesses must renew their LUTs every year.
- LUTs are not a substitute for proper documentation. Businesses must still keep proper documentation of their exports, even if they use a LUT.
- LUTs can be revoked by the GST authorities. If a business fails to comply with the GST rules and regulations, the GST authorities may revoke their LUT.
RELATED PRODUCTS
GST Registration
- Why is GST registration required?
- GST registration is required for businesses that meet certain thresholds, such as annual turnover or number of employees.
- GST registration is also required for businesses that sell goods or services across state borders.
- GST registration is a mandatory requirement for businesses that want to avail of the benefits of the GST network.
- Types of GST registration:
- Regular taxpayer: This is the most common type of GST registration. It is required for businesses that have an annual turnover of more than ₹20 lakh.
- Composition taxpayer: This type of GST registration is for businesses with an annual turnover of up to ₹1.5 crore. Composition taxpayers pay a fixed percentage of their turnover as GST.
- Non-resident taxable person: This type of GST registration is for businesses that are not located in India but have taxable supplies in India.
- Special category taxpayer: This type of GST registration is for businesses that are located in the special category states of Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and the northeastern states.
