Why Letter of Undertaking is important for export?

Letter of Undertaking is a document that exporters can file to export goods or services without having to pay taxes. An LUT (Letter of Undertaking) spares exporters the effort of pursuing a refund and eliminates the blocking of funds by way of tax payments.

What are the formalities for export?

To start export business, the following steps may be followed:

• Establishing an Organisation.
• Opening a Bank Account.
• Obtaining Permanent Account Number (PAN)
• Obtaining Importer-Exporter Code (IEC) Number.
• Registration cum membership certificate (RCMC)
• Selection of product.
• Selection of Markets.

How do I export under Lut?

Process for filing LUT certificate

1. Complete the export of goods/services within three months of the date of issue of export invoice, or such further period as allowed by the Commissioner.
2. Adhere to the GST laws with respect to exports.

What happens if LUT is not filed on time?

If LUT is not filed, the exporter must first pay the required tax while making exports and then claim a refund to avail benefit of zero-rated exports.

What are the documentation needed to comply with export procedure?

10 Documents You’ll Likely Need in Order to Export Your Product Successfully

1. Air Waybill.
2. Bill of Lading.
3. Certificate of Conformity.
4. Certificate of Origin.
5. Commercial Invoice.
6. Dock/Warehouse Receipt.
7. Export License.
8. Export Packing List.

What are the documents required for Lut?

Documents Required for LUT under GST

• LUT cover letter – request for acceptance – duly signed by an authorized person.
• Copy of GST registration.
• PAN card of the entity.
• KYC of the authorized person/signatory.
• GST RFD11 form.
• Copy of the IEC code.
• Canceled Cheque.
• Authorized letter.

How can I get letter of undertaking?

Steps to furnish LUT on the GST portal

1. Step 1: Login to GST Portal.
2. Step 2: Go to ‘SERVICES’ Tab > ‘User Services’ > Select ‘Furnish Letter of Undertaking(LUT)’
3. Step 3: Select the financial year for which Letter of Undertaking is applied for from the ‘LUT Applied for Financial Year’ drop-down list.

Is bank guarantee required for Lut?

LUT/Bond filing procedure for exports under GST LUT and bond filing procedure is mandatory if you want to export without payment of IGST. As per rule 96A, a bond is required to be filed along with 15\% bank guarantee.