Role of LUT under GST

Before starting our discussion on LUT, First we just need to understand the concept of Exports under GST :

If you are planning to start export of goods and services in that case this article is completely for you. In GST Regime there are total two type of exports are there :

1. With payment of tax
2. Without payment of tax

Let’s understand both type of exports in a simplified way :

1. With Payment of Tax : In this particular type of Export, Exporter has to charge GST on Supply and the same will be recredited to the registered bank account within 7 days from the filing of GSTR – 3B Return.

Special : For receiving of Automatic there is just one requirement is there that your Turnover as per GSTR-1 and 3B Should be Reconciled.

2. Without Payment of Tax : In this particular type of export there is no requirement of Charging GST on the Supply. Just the basic requirement for the Without payment of export is that you have already applied for the Letter of Undertaking(LUT) through GSTN Common Portal. In this particular type of Export Taxpayer is eligible for refund of accumulated Input tax credit.

Letter of Undertaking : Before starting of Financial year taxpayer needs to apply of Letter of Undertaking on GSTN Common Portal. After Application, if there will be no any notice issued by department within 7 working days in that case the same ARN of the application will be treated as your Approved application and taxpayer can use the ARN Number for their future correspondence.

In this blog we had covered the basics of LUT, if you have any query related this then you may comment in the chat box.

Author By :

CA. SACHIN JAIN