Letter of Undertaking under GST

Under GST, suppliers that export products or services or both have two alternatives for doing so:

• Provide the Commissioner of GST with a LUT or Bond (as appropriate). Assessee can get a credit for the GST it paid on its imports, and there will be no outbound tax to pay.
• You must first pay IGST on exports before you can get a refund.

To avoid having to pay IGST on exports, all taxpayers with a GSTIN will need to submit a Letter of Undertaking (LUT) in GST RFD-11 format through the GSTN’s centralized site. The export of goods and services requires the filing/submission of a letter of undertaking via electronic means.

So, submitting a LUT to qualify for GST exemption is always a good idea for those in the import/export trade.

• One advantage of submitting a LUT is that it remains in effect for a full year after submission.
• Nothing else would need to be done to comply.
• For the next 12 months, exports are exempt from IGST.

If you require this service, you are requested to contact our compliance manager 08943620159 or by email at info@techmincsc.in.