Under GST, there are two options being provided to exporters of goods or services or both for effecting such supplies :
- Submit an LUT or Bond (as applicable) to Commissioner of GST. In this case, there is no need to pay tax on exports and assessee can claim refund of GST paid on its inward supplies.
- Pay IGST on exports and then after claim refund for the same.
Lettet of Undertaking (LUT):
All registered taxpayers who export the goods or services will now have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the common portal of GSTN in order to make exports without payment of IGST. Letter of the undertaking has to be filed /submitted online before exporting the goods/services.
Hence, If you are engaged in Import Export business, then it would always be a great option to file an LUT for getting exemption from paying GST.
Benefits of filing LUT:
- Once you submit the LUT, it is valid for one whole year.
- There would be no additional compliance.
- IGST will not have to be paid on exports for a year.
Due date and validity of LUT:
A fresh LUT should be filed for each new financial year. One LUT will be valid for one financial year. That means if you have filed an LUT for FY 2019-20, it would expire on 31st March, 2020. So for FY 2020-21, a Fresh LUT needs to be filed.
Extension in time limit of requirement for filing of LUT:
For the Financial Year 2020-21, the CBIC has extended the time limit for filing the LUT under GST from 31st March, 2020 to 30th June 2020. and the taxpayer can continue to make the supply without payment of tax under LUT provided that the FORM GST RFD-11 for 2020-21 is furnished on or before 30.06.2020. Taxpayers may quote the reference no of the LUT for the year 2019-20 in the relevant documents.
Why to choose caagrawalkanhere as your Service provider for Filing of LUT?
caagrawalkanhere is a group of intellectuals. The entire team of caagrawalkanhere consists of Highly qualified CA, CS, Lawyers and business administrators. caagrawalkanhere would be a one stop destination for Filing of LUT under GST. We also provide services like Start up advisory, Secretarial compliance services, PAN / TAN application, DIN allotment, GST registration, Trademark registration, GST / Income tax return filing and many more. You may get in touch with our compliance manager on 0755 276 1432 or email info@caagrawalkanhere.com for free query and to know more about the services provided by us.