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How to renew Letter of Undertaking (LUT) on the GST portal?

Letter of Undertaking (LUT) can be renewed on the GST portal. Here is a step-by-step guide on how to renew a LUT certificate.

Most of the export documents need to be renewed before their expiration to avoid any legal or financial consequences. A few of these licenses or documents issued to exporters need to be renewed before the end of the fiscal or tax year. Letter of Undertaking is one such legal document that comes with the validity of a financial year. Under GST, every person, who runs a business of import and exports of goods or services, must furnish a Letter of Undertaking (LUT) if they desire to export without paying IGST¹. At the end of that year, it is important for the businesses to renew LUT.

Need for renewal of LUT certificate

If a Letter of Undertaking (LUT) is not renewed before its expiry, then the exporter will not be able to export without paying the applicable Integrated Goods and Services Tax (IGST) or without furnishing a valid bond. The exporter will not be able to avail benefits of zero-rated supplies under GST, which allows exports to be made without payment of IGST or with payment of IGST that can be subsequently claimed as a refund. Therefore, LUT renewal is important to avoid any disruptions in an export business.

Documents required for LUT renewal

Some of the documents required for renewal of Letter of Undertaking are:

· Renewal of LUT covering Letter
· Certificate of GST
· Copy of the previous LUT issued
· Form RFD-11
· Copy of No due Declaration and No prosecution Declaration

All these above-mentioned documents must be submitted with ARN Acknowledgement copy to get the renewed letter issued from the department.

What is the procedure to renew a Letter of Undertaking?

To renew LUT in the GST portal, following are the steps:

1. Open the GST portal and login with your credentials.
2. Click on the Services tab and select user services. Select Furnish Letter of Undertaking (LUT) from the given list.
3. Select the financial year from the LUT applied for the financial year drop-down.
4. Attach your previous LUT to apply for a new one. This document can be uploaded only in PDF or JPEG file formats with a file size of up to 2 MB.
5. Read the terms and conditions prescribed and select the checkboxes.
6. Two witnesses are required to file the LUT – add the name and address details of the two witnesses.
7. Select the authorized signatory.
8. Click on preview to view the form before submission. Save and click on the sign and file with DSC or sign and file with EVC button.

The application is reviewed by the authorities, and the Application Reference Number (ARN), is generated online as acknowledgment.

Once all the crucial export documents have been obtained, you can export from India through e-commerce without having to set up a physical warehouse or store abroad.

Get expert support for Letter of Undertaking (LUT)

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Frequently Asked Questions

What are the legal provisions for LUT renewal?

As per circular no. 8/8/2017 of GST para 2(b), LUT is valid for the financial year in which it is submitted⁴.

Is there any extension for LUT?

There is no extension for LUT.

Can we claim a refund without LUT?

Export of goods without paying IGST can only be done under cover of a LUT (Letter of Undertaking) or a bond. In this case, any taxes on inputs/input services will be available for refund³.

How many days does it take to approve LUT renewal?

After LUT by GST is filed successfully, the system generates ARN and acknowledgment. You will be informed about successful filing via SMS on the registered number and email, and can also download the acknowledgment as a PDF.

Published on February 25, 2023.

Sources:
1. https://taxguru.in/goods-and-service-tax/submit-letter-undertaking-lut.html
2. https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=117906#:~:text=In%20case%20LUT%20is%20filed,of%20goods%20and%20services%20exported.
3. https://cleartax.in/s/exports-refund-process-new-gst-returns
4. https://cbic-gst.gov.in/pdf/Final_Master_circular_LUT_Bond_04102017.pdf

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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.