How to furnish LUT in RFD-11 on GST Portal

A Letter of Undertaking (LUT) is used while exporting goods. The article explains what a letter of undertaking is and how to file an LUT on the GST portal.

What is LUT and why is it used?

All registered taxpayers who export goods or services to a country outside India or to Special Economic Zones (SEZs) will need to furnish a Letter of Undertaking (LUT) in Form GST RFD-11 on the GST portal, in order to make these exports without the payment of IGST.

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

A Letter of Undertaking has to be filed /submitted online before exporting goods/services to a country outside India or to Special Economic Zones (SEZs). Prior to this, exporters had to manually submit the filled-in and signed RFD-11 on a 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.

Steps to furnish LUT on the GST portal

Here are the steps to be followed on GST portal/GSTN to furnish LUT: 

Step 1: Login to GST Portal.

Step 2: Go to  ‘SERVICES’ Tab > ‘User Services’ > Select ‘Furnish Letter of Undertaking(LUT)’

Step 3: Select the financial year for which Letter of Undertaking is applied for from the ‘LUT Applied for Financial Year’ drop-down list. Eg: 2021-22.

Note: If Letter of undertaking has been already furnished manually for any of the previous periods, then please upload the same by Clicking on ‘Choose File’ option on the same window.

Ensure the following:

• Only PDF or JPEG file formats are allowed.
• Maximum file size for upload is 2 MB

Step 4: Fill up the necessary details on the Letter of Undertaking Form/ GST RFD-11 that appears on the screen The following needs to be done on the form:

(a) Self-Declaration: Tick mark by clicking against each of the three boxes  

By doing this, Exporter undertakes the following : 

• Export of goods/services will be completed within a period of three months from the date of issue of Export invoice or further period allowed by the Commissioner if any.
• To abide by GST law in respect of exports
• To pay IGST along with Interest* if failed to Export

*Interest must be paid at the rate of 18% per annum for the period From date of issue of export invoice upto date of Payment of IGST.

(b) Give Independent Witnesses Information: Mention the Name, Occupation and Address of two independent witnesses in the boxes highlighted in red color mandatorily.

Note that the Witnesses declared in the Letter of Undertaking (LUT) are the ones declared on the running Bond/ Bank guarantee.   
 

Step 5: Enter the Place of filing > Click on ‘SAVE’ > click on ‘PREVIEW’ to verify the correctness of the form before submission Note that currently, the revision of a signed/submitted form is not possible. 

Step 6: Sign and file the form using either of the below options: 
 

The Primary authorised signatory/ any other authorised signatory can sign the Letter of Undertaking. Authorised signatory can be the working partner, the Managing Director, the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor to execute the form.
 

• Submit with DSC: Sign the application using the registered Digital Signature Certificate of the selected authorized signatory.

To use this option, Click on ‘SIGN AND FILE WITH DSC’ > Warning message box appears > Click ‘PROCEED’> System generates a unique ARN (Application reference number)**

OR

• Submit with EVC: To use this option, Click on ‘SIGN AND FILE WITH EVC’ > The system will trigger an OTP to the registered mobile phone number and e-mail address of the authorized signatory. Enter that OTP in the pop-up to sign the application > Warning message box for submission appears > Click ‘PROCEED’> System generates a unique ARN (Application reference number)**

Note: Companies and LLPs can file only using DSC 

** A confirmation message appears. GST Portal sends this ARN at registered email and mobile of the taxpayer by e-mail and SMS.

You can click on the DOWNLOAD button to download the acknowledgement. You may also check out the Letter of Undertakings previously furnished on the GST portal. 

On the home page, Go to ‘SERVICES’ > ‘ User Services’ > ‘View my Submitted LUTs’ > Select period > Check out the list of LUTs furnished during the selected period > Click ‘VIEW’ against the particular Letter of Undertaking to view the detail. 
 

Related Articles

What is Bond/ Letter of Undertaking under GST & How to use it?

What are Deemed exports under GST?

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