In order to understand the concept of GST LUT filing, first, we need to understand the term “IGST – Integrated Goods and Services Taxes”. IGST, in simple terms, can be understood as one type of GST which is charged when there is movement of goods and services from one state to another. Centre would levy IGST which would include CGST and SGST based on all inter-state transactions of goods and services. GST LUT filing is also named as Export bond filing, which is a letter of undertaking where the exporter announces that he/she would accomplish all the requirements prescribed under GST while exporting without making IGST payment. As per new regime, all exports are imposed with IGST, which can later be reclaimed via a reimbursement against the payment of tax. LUT saves exporters the effort and time spent in chasing a refund and eradicates the blocking of capital by way of payment of taxes. LUT filing online is super-easy and quick.
In order to get LUT under GST, the GST holder must ensure that he/she has LUT cover letter which is a request for acceptance duly signed by an authorized signatory with all the required documents such as PAN card, KYC details, GST registration and Cancelled cheque. The LUT filing remains valid only till 1 year from the submission date.