Get your Letter of Undertaking in
3 simple steps @ 1,999
- Documents Review
- Review of previous LUT
- Filling and submission of LUT application
- Letter of Undertaking
We're ready to apply for your LUT!
Introduction
Letter of Undertaking (LUT) holds significance for exporters. This document allows exporters to engage in the export of goods or services without the obligation of immediate tax payment.
As per the rules it is mandatory for all registered taxpayers engaged in the export of goods or services to provide a Letter of Undertaking (LUT). This obligation is essential to facilitate exports without paying Integrated Goods and Services Tax (IGST).
Bright Advis assists you in efficiently obtaining the GST Letter of Undertaking (LUT), making your export journey smoother than ever.
Who can apply for LUT
The Letter of Undertaking (LUT) can be applied by any registered taxpayer engaged in exporting goods and services.
Intent to Supply
The applicant should intend to supply goods or services within India, to foreign countries, or to Special Economic Zones (SEZs).
GST Registration
The entity seeking to avail the benefits of an Letter of Undertaking should be registered under the Goods and Service Tax (GST) framework.
Tax-Free Supply
The desire to supply goods without the imposition of Integrated Goods & Service Tax (IGST) is an essential requirement for LUT application.
Who cannot apply for LUT
Individuals facing prosecution for tax evasion exceeding Rs. 250 lakh or more are ineligible to benefit from this option. Entities ineligible for LUT can still furnish a bond. This bond, usually on non-judicial stamp paper, requires a bank guarantee. The guarantee should cover the anticipated tax liability based on exporter assessment.
Documents Checklist
We have compiled a detailed list of documents required to obtain a Letter of Undertaking (LUT) in India.
For Business
- Copy of GST Registration
- Document Proof
- Copy of IEC Code, if applicable
From Authorised Person
- LUT Cover Letter signed by Authorised Person
- Document Proof of Partners
- Authorisation Letter
Other Documentation
- GST RFD 11 Form
- Cancelled Cheque
- Bank Guarantee
- Partnership Deep or MOA/AOA, whichever is applicable
process
Get your LUT
in 3 Simple Steps
At Bright Advis, we value time and for that matter we have simplified the complete process in 3 easy steps. This makes your journey smooth, structured and easy.
- Pre-application
- We collect basic information
- Gather required documents
- Drafting & Application
- Review the Previous Years LUT
- Filling the Application
- Apply for Letter of Undertaking
- Approval
- Obtain Letter of Undertaking
After successful submission and verification you will be provided with a Letter of Undertaking. In case there is an issue, we would have to re-apply again.
benefits
What's Good
about getting a Letter of Undertaking (LUT)
Tax-Free Export Benefits
Opting for the Letter of Undertaking (LUT) lets entities export without the immediate burden of tax payment. Unlike the alternative system, where taxes are initially paid and later claimed as refunds for zero-rated exports.
Simplified Process
Utilising the LUT streamlines the export process by eliminating the complexities associated with claiming tax refunds or engaging in follow-ups with tax authorities. This results in significant time savings and operational ease for exporters.
Unblocked Working Capital
Choosing the LUT frees up working capital for exporters, as funds that would have been tied up in immediate tax payments remain accessible. This is particularly beneficial for small and medium-sized enterprises (SMEs) facing challenges related to financing and working capital.
What do you get
when you register with our help
Obtain Letter of Undertaking within 7 days
When you get your Letter of Undertaking with the help of Bright Advis, you not only get the items mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.
- Review of Documents
- Review of previous years LUT
- Filling and Furnishing of GST RFD 11 Form
- Obtain Letter of Undertaking
- Expert advice you can count on
- Our bright support whenever it's needed
testimonials
What our clients say
Why Bright Advis
There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.
Bright & Knowledgeable
Bright Advis delivers high quality financial services by a team of bright and knowledgeable experts.
Always happy to help
Bright Advis commit to provide dedicated support and assistance to our clients.
Professional & Approachable
We maintain a high level of professionalism while being easily approachable for our clients.
Easy & Quick
We focus on streamlining and simplifying the complex processes for our clients.
Bought Together
There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.
Simplify GST Annual Returns Filing process
Let Indirect Tax experts from Bright Advis file your annual Goods and Service Tax Returns in a timely and convenient manner.
Outsource Accounting & Bookkeeping
Save valuable time, money and labor by outsourcing your accounting and bookkeeping tasks to Bright Advis experts.
File your TDS Return easily today!
Need help filing your TDS Returns? Bright Advis experts will ensure an easy, on time and error free TDS Return Filing process.
Frequently Asked Questions
Yes. It is mandatory to furnish the Letter of undertaking (LUT) to export the goods, services, or both without paying the IGST.
In case if the exporter fails to provide the LUT then he has to pay the IGST or furnish an export bond.
A person who has been prosecuted for evading tax of Rs. 2.5 crore or above under the act cannot furnish the LUT.
If the LUT is not filed on time the exporter is required to pay the tax while carrying out exports and then claim a refund to avail the benefit of the zero-rated exports.
Letter of the undertaking for export of goods or services is furnished in Form RFD 11.
Primary authorized signatory/Any other Authorized Signatory needs to sign and file the verification with DSC/EVC. The authorized signatory can be the working partner, the managing director, or the proprietor or by a person duly authorized by such operating partner or Board of Directors of such company or proprietor to execute the form
Yes, the Taxpayer will be able to see his LUT after filing.