All registered tax payers 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.
When to apply/file?- 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 –
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.
- 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.
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: 2020-21
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.
Furnish fresh LUT for FY 2021-22
The due date to furnish a fresh LUT for FY 2021-22 is 31st March 2021.
Furnish fresh LUT for FY 2020-21
LUT will be valid for a financial year. If LUT was furnished in FY 2019-20, then the date of expiry of the validity of such LUT is 31st March 2020. Therefore, You need to furnish fresh LUT for FY 2020-21. The time limit to furnish such LUT for FY 2020-21 is extended from 31st March 2020 till 30th June 2020.
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:
- Only PDF or JPEG file formats are allowed.
- Maximum file size for upload is 2 MB
By doing this, Exporter undertakes the following :
a) 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.
b) To abide by GST law in respect of exports
c) 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
- Self-Declaration: Tick mark by clicking against each of the three boxes
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:
- Give Independent Witnesses Information: Mention the Name, Occupation and Address of two independent witnesses in the boxes highlighted in red color mandatorily.
Who Should sign?- The Primary authorised signatory/ any other authorised signatory can sign the Letter of Undertaking.
Authorised signatory can be the working partner, the Managing Director or 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.
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)**
- Submit with DSC: Sign the application using the registered Digital Signature Certificate of the selected authorized signatory.
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.
- 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)**
For further reading on Export procedures, check out: