LUT Certificate Under GST: Registration, Filing Process, Validity & Form GST RFD-11

There are many People who are always planning of expanding their business and to export in the international markets. For all those businesses exporting to the Special Economic Zone (SEZ) it may sound like just another GST requirement. Whereas LUT certificate plays a crucial role in helping them to save costs and simplify compliance. A Letter of Undertaking GST helps eligible exporters to supply goods or services without paying Integrated GST. The whole LUT certificate under GST its registration, filling process takes place online making it convenient for the businesses to keep an eye watch to the process.

In this guide, Tmwala will help you explain all about the basics of the LUT certificate under GST its registration, filling process, validity and form GST RFD-11.

What is an LUT Certificate Under GST?

A LUT certificate is submitted by a registered taxpayer as per the GST framework. It enables the businesses to export directly without getting into the hassle of paying taxes first. This reduces financial pressure and improves cash flow, making exports more efficient. The LUT was introduced in India by the Central Goods and Services Acts, 2017 (CGST) it is filed by filling the Form GST RFD-11 available on GST portal, which is valid for one financial year. 

Why is LUT Under GST Important?

For a business paying IGST on every export transaction and then waiting for a refund can tie them with numerous funds. This is where LUT certificate under GST becomes valuable. Some key benefits include:

• Smooth GST compliance for export transactions.
• Exporting without paying IGST
• No need for refund claims

Who Can Apply for LUT Registration?

Any company or business who is engaged in exporting of goods and services can genrally apply for the LUT certificate registration.

• Businesses supplying to Special Economic Zones (SEZs)
• Exporters of goods and services 

Eligibility to apply for LUT

• The exports should be made either in India or outside India special economic zones (SEZs).

• The person exporting shall be a registered taxpayer under GST so the goods and services of that person also be registered as per the GST.

• The person shall comply with the tax payments timely otherwise it can result into revocation without payment of IGST.

• The taxpayer shall not be prosecuted under Central Goods and Services Tax (CGST) Act, 2017. 

Step-by-Step LUT Filing Process

One of the biggest advantages of LUT filing is that it can be completed entirely online through the GST portal. Here are the important steps are needed to be followed while making the registration.

Step 1: Visit the GST portal website Goods & Services Tax (GST) | Home 

Sign in using your GST credentials/Register after mentioning mandatory details and sign in with the OTP verification:

Step 2: Navigate to the services option under which “Furnish letter of undertaking LUT”:

Step 3: Select the Financial Year Choose the financial year for which you’re applying. 

Step 4: Fill in the Required Declaration. Read all the declaration with attention and that you agree with all that for LUT under GST. Check each all the three boxes by clicking on them.

Step 5: Enter Witness Details that are needed.

Step 6: Verification to authenticate the application using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Step 7: After the successful submission, an acknowledgement is generated. Download and save the approved LUT Certificate for your records.

What is Form GST RFD-11?

GST RFD 11 is a form with declaration from the exporter meeting with the prescribed requirements under GST without making IGST payment. The link to the form for reference is mentioned here : RFD-11.pdf 

Validity of LUT Under GST

A LUT under GST is valid for one financial year. Which means businesses need to submit a new application every year if they wish to continue exporting without paying IGST.

Conclusion

LUT certificate is the most helpful compliance for the exporters under GST. Eligible companies can export products and services without paying IGST by providing a Letter of Undertaking GST, which helps them maintain working capital and simplify operations. Form GST RFD-11 on the GST site is used to complete the straightforward, paperless LUT registration and filing process. An LUT under GST is only valid for one fiscal year, therefore timely renewal is crucial to maintaining export benefits.

FAQs

1. Is LUT mandatory for exporters?
   No. However, if exporters wish to export without paying IGST upfront, submitting an LUT is generally the preferred option.
2. Is LUT registration free?
   Yes. There is no government fee for LUT registration on the GST portal.
3. Can LUT filing be done online?
   Yes. The complete LUT filing process is available online through the GST portal.
4. What is Form GST RFD-11 used for?
   Form GST RFD-11 is used to furnish the Letter of Undertaking GST, allowing eligible exporters to export without paying IGST.
5. How often should an LUT be renewed?
   An LUT under GST must be renewed every financial year to continue enjoying its benefits.