Understanding Letter of Undertaking (LUT) for Export Conditions in GSTIndia.biz

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This content discusses the eligibility criteria, persons authorized for execution, validity, and restricted conditions for withdrawing a Letter of Undertaking (LUT) under export conditions in the GST regime of India. It also outlines the required documents for filing an LUT.

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GSTIndia.biz LETTER OF UNDERTAKING UNDER EXPORT CONDITIONS & REQUIREMENTS FOR FILING Ashu Dalmia Consultant: GCC VAT, INDIA GST, TRAINER & AUTHOR Mob: +91-9810893243, E-Mail: info@gstindia.biz

LUT : ELIGIBILITY All exporters requiring exports without payment of IGST are eligible to furnish Letter of Undertaking(LUT) in place of bond except those who have been prosecuted for any offence under The Integrated Goods and Services Tax Act, 2017 (13 of 2017) or The Central Goods and Services Tax Act, 2017 (12 of 2017) or or any of the existing laws in force in a case where the amount of tax evaded exceeds Rs. 250 Lakhs. www.gstindia.biz 2

PERSONS ELIGIBLE FOR EXECUTION The The The working Partner or Managing Partner or Company Secretary or by a person duly authorized by such working partner or Board of Directors of such company or proprietor The Proprietor or www.gstindia.biz 3

Validity of LUT Letter of Undertaking shall be valid for 12 months, unless exporter fails to comply with the conditions of letter of undertaking. LUT submitted with all the documents should be accepted within a period of 3 working days of its receipt. Separate LUT application has to be filed for each GSTIN www.gstindia.biz 4

RESTRICTED CONDITIONS FOR WITHDRAWL OF LUT On non-fulfilment of below conditions Exporter is liable for the tax due along with the interest or else LUT facility will be deemed to have been withdrawn till the time due amount is paid 15 days after the expiry of 3 months from the date of issue of the invoice for export, if the goods are not exported out of India GOODS 15 days after the expiry of 1 year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. SERVICES www.gstindia.biz 5

DOCUMENTS REQUIRED FOR LUT FILING Cover Page containing details of all the documents (on company s letter head) Form GST RFD-11 Necessary Documents Letter of Undertaking (on company s letter head) Copy of GSTIN / Form GST REG-25 Board Resolution for authorized signatory (on company s letter head) IEC Certificate Declaration of Principal Place of Business PAN of company www.gstindia.biz 6

DOCUMENTS REQUIRED FOR LUT FILING Necessary Documents Declaration by company regarding company has not been prosecuted for any offence under the CGST Act 2017 or under any of the existing law evaded exceeds Rs.2,50,000. (on company s letter head) Certified copies of Pan Card and Aadhaar Card of 2 witnesses of LUT form www.gstindia.biz 7

FORMAT OF COVER PAGE To, The Assistant Deputy Commissioner (GST) Division- Address: , Range- Sir/ Madam Sub: Submitting the letter of undertaking for export of goods (GSTIN- ) Sir, We, address at Number. , hereby submitting letter of undertaking for export without paying IGST. We, also hereby submitting the documents as follows: - 1. Form GST RFD- 11 2. Letter of Undertaking 3. PAN of Company 4. Address Proof of witnesses 5. GSTIN Provisional Registration Certificate (Form GST REG-25) 6. IEC Copy 7. Board Resolution for authorized signatory 8. Declaration of Principal Place of Business having Central Goods and Services Tax Identification www.gstindia.biz 8

FORMAT OF COVER PAGE 9. Declaration by company regarding company has not been prosecuted for any offence under the CGST Act 2017 or under any of the existing law evaded exceeds Rs.2,50,000. Kindly acknowledge the same & do the needful at earliest. Thanking You For (Company Name) www.gstindia.biz 9

FORM GST RFD-11 [See rule 96A] Furnishing of bond or Letter of Undertaking for export of goods or services 1. GSTIN 2. Name 3. Indicate the type of document furnished Bond: Letter of Undertaking 4. Details of bond furnished S. No. Ref. no. of the bank guarantee Date Amount Name of Bank & Branch 1 2 3 4 5 Note: - Hard copy of the bank guarantee and bond shall be furnished to the jurisdictional officer. 5. Declaration - The above-mentioned bank guarantee is submitted to secure the integrated tax payable on export of goods or services. I undertake to renew the bank guarantee well before its expiry. In case I/We fail to do so the department will be at liberty to get the payment from the bank against the bank guarantee. The department will be at liberty to invoke the bank guarantee provided by us to cover the amount of integrated tax payable in respect of export of goods or services. Signature of Authorized Signatory Name__________________ Designation / Status_______ Date___________________ www.gstindia.biz 10

Letter of Undertaking for export of goods or services without payment of integrated tax (See rule 96A) To The President of India (hereinafter called the "President"), acting through the proper officer I/We .................................. of.......................... (address of the registered person) having Goods & Services Tax Identification Number No , hereinafter called "the undertaker(s) including my/our respective heirs, executors/ administrators, legal representatives/successors and assigns by these presents, hereby jointly and severally undertake on this .................. day of ................... to the President. (a) to export the goods or services supplied without payment of integrated tax within time specified in sub-rule (1) of rule 96A ; (b) to observes all the provisions of the Goods and Services Tax Act and rules made thereunder, in respect of export of goods or services; (c) pay the integrated tax, thereon in the event of failure to export the goods or services, along with an amount equal to eighteen percent interest per annum on the amount of tax not paid, from the date of invoice till the date of payment. I/We declare that this undertaking is given under the orders of the proper officer for the performance of enacts in which the public are interested. www.gstindia.biz 11

Continued.. I/We declare that this undertaking is given under the orders of the proper officer for the performance of enacts in which the public are interested. IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the undertaker(s) Signature(s) of undertaker(s). Date : Place : Witnesses (1) Name and Address (2) Name and Address Date Place Accepted by me this.............................day of ......................... (month)................. .. (year) ..of .. (Designation) for and on behalf of the President of India Occupation Occupation www.gstindia.biz 12

FORMAT FOR BOARD RESOLUTION (COMPANY S LETTER HEAD) CERTIFIED TRUE COPY OF THE BOARD RESOLUTION PASSED BY THE BOARD OF DIRECTORS OF THEIR BOARD MEETING HELD ON (Date, Time and Address) AT RESOLVED THAT , be and is hereby authorized to sign, file and verify all documents related to appropriate authorities under Goods & Services Tax Act and other applicable laws. RESOLVED FURTHER THAT be and is hereby authorized to do all such acts, deeds and things as may be necessary or incidental to give effect to the above Resolution. RESOLVED FURTHER THAT a certified copy of this resolution signed by any of the Directors be provided to anyone concerned or interested in the matter. CERTIFIED TRUE COPY for (Company Name) (Name and Designation) of the Company, resident of (Director s Signatures) www.gstindia.biz 13

DECLARATION AGAINST PROSECUTION (COMPANY S LETTER HEAD) TO WHOM IT MAY CONCERN We, Goods and Services Tax Act, 2017 or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees. For (Company s name) address at has not been prosecuted for any offence under the Central (Authorized Signatory) www.gstindia.biz 14

DECLARATION OF PRINCIPAL PLACE OF BUSINESS (COMPANY S LETTER HEAD) TO WHOM IT MAY CONCERN We, as our Principal Place of Business . We also confirm that we will comply with proviso 3 to Rule 46 of CGST Act,2017 while raising the invoices and with Rule 96A CGST Act,2017. For (Company s name) address at having GSTIN hereby confirm and declare (Authorized Signatory) www.gstindia.biz 15