Letter of Undertaking - Taxonomy

A Letter of Undertaking (LUT) is a document that businesses use to declare that they will fulfill all the requirements and conditions laid out by the government in relation to the export of goods or services without paying any integrated goods and services tax (IGST). Here’s a general outline of the process for submitting an LUT under the Goods and Services Tax (GST) system in India:

1. Eligibility: Ensure that your business is eligible to submit an LUT. Generally, businesses engaged in the export of goods or services are eligible for LUT.
2. Create an Online Account: Log in to the GST portal using your credentials. If you don’t have an account, you’ll need to register on the GST portal.
3. Navigate to the LUT Section: Once logged in, navigate to the ‘Services’ tab and then ‘User Services.’ Under ‘User Services,’ you will find the ‘Furnish Letter of Undertaking (LUT)’ option.
4. Fill in the Form: Complete the LUT form with accurate information. You’ll need to provide details such as your business name, address, GSTIN (Goods and Services Tax Identification Number), bank details, etc.
5. Upload Supporting Documents: Attach the necessary supporting documents, such as a copy of your GST registration certificate, proof of your business entity, and any other documents required by the authorities.
6. Verification: Review the information provided to ensure accuracy. Once verified, submit the form.
7. Acknowledgment: After submission, you should receive an acknowledgment receipt. Save or print this receipt for your records.
8. Approval: The concerned GST officer will review your application. If everything is in order, they will approve the LUT. You may also receive communication or updates on the status of your application through the GST portal.
9. Validity Period: An LUT is generally valid for a specified period. Ensure that you renew it before the expiry date if you continue to engage in export activities.
10. Download Approved LUT: Once approved, download the approved LUT from the GST portal. This document serves as proof that you are eligible for the export of goods or services without paying IGST.