REVISED REQUIREMENTS FOR LETTER OF UNDERTAKING (LUT) UNDER GST FOR EXPORTERS

Posted By on October 7, 2017

In line with its objective to make GST Exporter’s (specially small exporters) friendly, the Central Government has taken pro-active measure to help all the Exporters to obtain Letter of Undertaking (LUT) under GST instead of requirement of Bond for the Small Exporters.

Earlier there were following benchmark requirement for an Exporter to obtain LUT under GST, in absence of which he was required to either Export on Payment of GST and claim refund to provide Bond for security of the GST:-

“the exporter has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year i.e. FY 2016-17 or he is a status holder in the Foreign Trade Policy 2015-2020″

The central government has issued Notification No. 37/2017 – Central Tax dated 04-10-2017 (Copy Enclosed) in which the facility of Letter of Undertaking has been extended to all registered dealers with (necessary safeguards) as below:-

(a) all registered persons who intend to supply goods or services for export without payment of integrated tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or the Integrated Goods and Services Tax Act, 2017 (13 of 2017) or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees;”

In line with the above notification & the requirements called for in various GST Commissionerates (as per our experience)  the revised requirements for Filling of the Letter of Undertaking are noted below:-

[Note : All documents should be Sealed and Signed by Authorised Signatory and are to be submitted in Duplicate to the Jurisdictional Officer]

S. No. Information
1. Form GST RFD – 11
2. Letter of Undertaking
3. GSTIN Registration Certificate in Form GST Reg 06
4. Authorisation Letter of the Authorised Signatory along with ID Proof of the Authorised Signatory
5. Copy of Import Export Code (IEC) Certificate
6. Copy of Certificate of Incorporation with MOA / AOA of the Company
7. Declaration on Stamp Paper
8. PAN Card Copy of the Applicant
9. ID Proof of Two Witnesses (Self Attested by Witnesses)

The government is proactively taking steps in the interest of the Tax Payers and is trying to ease the procedure without compromising on the basic security issues and impact on government Revenue. GST is a new law and need requisite time to stablise, it is important for all stake holders to discuss and bring to the knowledge of the government any issue or problems and the government has shown its commitment that they will address all genuine problems of Tax Payers and Assessees.

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The Views expressed on this blog are strictly personal and for knowledge of our clients only. The contents of this blog are solely for informational purpose and it does not constitute any professional advice or recommendation. The laws related to GST and other taxes are under evolution and subject to constant changes and amendments over time. It is suggested to take specific legal advice and necessary due diligence before relying on the contents and information of this Blog. The authors of this blog, does not accept any liabilities for any loss or damage of any kind arising out of information on this blog and for any actions taken in reliance thereon.