Procedure for Submitting a Letter of Undertaking (LUT) on the GST Portal

This article clarifies the purpose of a Letter of Undertaking (LUT) and outlines the procedure for submitting an LUT through the GST portal.

Understanding the Letter of Undertaking (LUT) and its Purpose

Registered taxpayers engaging in the export of goods or services from India, including those supplying to Special Economic Zones (SEZs), are required to submit a Letter of Undertaking (LUT). This document, submitted as Form GST RFD-11 on the official GST portal, permits exporters to undertake their activities without immediate payment of Integrated Goods and Services Tax (IGST). Further details on exports under GST can be found separately.

When to File an LUT and Historical Context

An LUT must be filed electronically prior to exporting goods or services from India to foreign countries or SEZs. Before the implementation of GST, exporters faced a more cumbersome process, involving manual submission of a signed RFD-11 on business letterheads in duplicate. One copy went to the Jurisdictional Deputy/Assistant Commissioner for verification via ICEGATE, and the other accompanied export documents to the Customs clearing authority.

This manual procedure, similar to the previous excise system, consumed significant time and operational costs for exporters. The current online method has streamlined this compliance, enhancing efficiency, speed, and transparency for all parties involved in the export process. It is important to note that a Bond, if furnished instead of an LUT, still requires manual submission on non-judicial stamp paper.

Step-by-Step Guide to Filing LUT on the GST Portal

To submit an LUT on the GST portal, follow these instructions:

1. Log In: Access the official GST Portal.
2. Access LUT Services: Navigate to the ‘SERVICES’ tab, then ‘User Services’, and select ‘Furnish Letter of Undertaking(LUT)’.
3. Select the Financial Year: From the ‘LUT Applied for Financial Year’ drop-down list, choose the relevant financial year (e.g., 2021-22).
   • Note: If an LUT was manually furnished for any prior period, upload the scanned document by clicking ‘Choose File’ on the same screen. Ensure the file is either PDF or JPEG format and does not exceed 2 MB.
4. Completing the LUT Form (GST RFD-11): Fill in the required information on the Letter of Undertaking Form/GST RFD-11 as it appears on your screen.
   • Self-Declaration: Acknowledge the self-declaration by ticking each of the three checkboxes. By ticking these boxes, the exporter confirms the following commitments:
     • Completion of goods/services export within three months from the export invoice date, or any extended period granted by the Commissioner.
     • Adherence to GST regulations concerning exports.
     • Payment of IGST along with applicable interest if the export obligation is not met.
     • Interest is charged at 18% per annum, calculated from the export invoice date until the IGST payment date.
   • Witness Information: Provide the name, occupation, and address of two independent witnesses in the designated fields. These witnesses are typically the same individuals declared for a running Bond or Bank guarantee.
5. Review and Submission: Enter the ‘Place of filing’, then click ‘SAVE’, followed by ‘PREVIEW’ to meticulously verify the accuracy of the form before final submission. Currently, revisions to a signed or submitted form are not possible.
6. Signing the Form: The Primary Authorised Signatory or any other authorised signatory (such as a working partner, Managing Director, Company Secretary, proprietor, or duly authorised person) can sign the Letter of Undertaking using one of the following methods:
   • Submit with DSC (Digital Signature Certificate): Click ‘SIGN AND FILE WITH DSC’. Confirm the warning message by clicking ‘PROCEED’. The system will then generate a unique Application Reference Number (ARN). This option is mandatory for Companies and LLPs.
   • Submit with EVC (Electronic Verification Code): Click ‘SIGN AND FILE WITH EVC’. An OTP will be sent to the registered mobile number and email address of the authorised signatory. Enter this OTP in the pop-up window to sign the application. Confirm the submission warning by clicking ‘PROCEED’, and the system will generate a unique ARN.

A confirmation message will appear, and the GST Portal will send the ARN to the taxpayer’s registered email and mobile via email and SMS. You can download the acknowledgement by clicking the ‘DOWNLOAD’ button.

Verifying Submitted LUTs

To view previously submitted LUTs on the GST portal, navigate to the home page, then ‘SERVICES’ > ‘User Services’ > ‘View my Submitted LUTs’. Select the desired period to see a list of furnished LUTs and click ‘VIEW’ next to a specific entry to review its details.