How to File Renewal of LUT under GST?

Under GST Law, every registered person who is in the business of exporting goods or service outside the purview of India desiring to export without the payment of IGST needs to furnish a Letter of Undertaking (LUT) to the concerned Department manually or online for the financial year.

The validity of the LUT issued will be valid up to end of financial year, Hence, at the end of FY, the registered person needs to apply for the renewal of LUT for the next year in order to continue making the exports without the payment of IGST.

For example- Mr. Ram applied LUT on August 20, 2017 the department will issue LUT valid till 31 March 2018 and for the next financial year, Ram needs to file for renewal of LUT with the concerned department.

Legal Provision for renewal of LUT

As per the circular No. 8/8/2017 of GST Para 2(b)

The LUT shall be only valid for the whole financial year in which it is submitted. Thus, the validity of LUT issued in the financial year 2017-18 would be until 31/03/2018.

On that account, it is clear that the validity of LUT which is issued in the FY 2017-18 has been over and every registered exporter who desires to export the goods or services without the IGST shall apply for renewal of Letter of Undertaking.

Procedure for Renewal of Letter of Understanding

The procedure for renewal is same like as it was for applying the LUT for the previous year. Following are the steps for the renewal:-

Step- 1: Login to the GST portal, go to User Service and Select the Tab “Furnishing Letter of Undertaking”

Step– 2: Select the Financial year for which you want to renew the LUT.

Step– 3:  As you have already furnished LUT offline for the previous period, attach the same here and continue to file your application.

Step- 4: Read and Select all the three check boxes for accepting the conditions prescribed in Letter of Undertaking.

Step- 5 Enter the details of two Independent witnesses and submit.

*Primary Authorised signatory can sign the application form for renewal.

List of Documents for renewal of LUT:

Following are the important documents required for renewal of Letter of Understanding:-

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

Physical Submission of the Documents at the Concerned Office 

Although, it is not cleared, whether to submit the documents online is enough or physical submission is necessary, but we have noticed that in most of the GST offices, in absence of clear guidelines, it is mandatory to submit all above-mentioned documents along with ARN Acknowledgement copy, to get the renewed letter issued from the department.

Conclusion

For any query, feel free to contact at info@hubco.in or you can contact us here.

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