Overview

Letter of Undertaking (LUT) is a type of Bank Guarantee, under which a bank allows its customer to raise money from another Indian bank’s foreign branch as a short – term credit. LUT will be valid for a Financial Year.

Eligiblity criteria for GST registration

• All the registered taxpayers who export the Goods or Services will have to furnish Letter of Undertaking (LUT) in GST RED – 11 form on GST Portal in order to make export without payment of IGST.
• LUT can be submitted by anyone registered under the GST, provided they have not been prosecuted for tax evasion exceeding Rs. 250 Lacs, or for any other offence under the CGST Act, the IGST Act 2017, or any other prevailing statue.

Required Documents

• A copy of GST Registration Certificate.
• A cover letter addressing to Assistant / Deputy Commissioner of GST of respective division required on the top of application.
• Form GST – RFD – 11 original Two Sets.
• Original two sets of Annexure of Letter of Undertaking (LUT) on Letter Head of entity. Signatures of all undertakers should be verified by Bank Manager. It also requires two witnesses.
• Such annexure of LUT should be notarized.
• Personal IDs and PAN of all undertakers.
• Incorporation documents of entity. (Partnership deed for partnership Firm, certificate of Incorporation for Company / LLP etc.)
• PAN of entity.
• Copy of Board Resolution / Authorization letter authorising director/ partner to file application.
• Copy of IEC code, if available.
• KYC of the authorised person / signatory.
• Cancelled cheque.