GST LUT Filing in Karnataka

GST LUT Filing in Karnataka

The Letter of Undertaking (LUT) under GST is a document that exporters file to conduct exports without paying IGST. As per the provisions under Rule 96A of the CGST Rules, 2017, any registered taxpayer exporting goods or services can furnish an LUT instead of paying taxes and subsequently claiming a refund. This provision applies to both domestic exports and supplies to Special Economic Zones (SEZs).

A LUT essentially provides the exporter with assurance to the government that they will surely comply with all prescribed regulations and GST procedures while conducting exports. This basically makes the business of the export of goods and services very smooth and hassle-free by eliminating the requirement of tax payments beforehand for GST compliance, which may hamper their course of business, thereby ensuring that exporters can continue their operations without financial strain and unnecessary complexities.

In the absence of a LUT, exporters need to pay IGST at the time of export and then claim a refund, which can lead to cash flow issues, so avoid the various cash flow issues. The process of a LUT is there to follow. Thus, LUT filing simplifies export procedures and ensures smoother business operations.

Eligibility Criteria for Filing LUT in Karnataka

Filing an LUT in Karnataka is not limited to large-scale exporters. Any registered taxpayer in Karnataka engaged in the export of goods or services can apply for an LUT, provided they meet the following conditions:

• Registered under GST: The exporter must hold a valid GST registration.
• No Criminal Proceedings: There should be no cases of tax evasion or criminal proceedings against the exporter involving more than ₹2.5 crore.
• Export of Goods or Services: The exporter of goods or services must be involved in exporting goods or services or supplying them to SEZs without payment of IGST.

Documents Required to File an LUT in Karnataka

1. GST Registration Certificate: A valid GSTIN of the exporting entity.
2. PAN Card: Permanent Account Number (PAN) of the business or proprietor.
3. Export Documents: Invoice copies, shipping bills, and export contracts.
4. Authorized Signatory's ID Proof: Aadhaar card, passport, or voter ID of the authorized signatory.
5. LUT Form (Form GST RFD-11): The prescribed form for LUT filing under GST.
6. Business Address Proof: Rent agreement, electricity bill, or property tax receipt and other like nature documents as per the required annexure.
7. Bank Account Details: Cancelled cheque or bank statement of the business account.

Online Procedure of GST LUT Filing in Karnataka

The GST LUT filing process in Karnataka is entirely online, making it convenient for exporters. Here is a step-by-step guide to filing an LUT:

1. Login to GST Portal:

• Visit the official GST portal (https://www.gst.gov.in).
• Log in using your GSTIN and password.

2. Navigate to LUT Filing:

• Under the 'Services' tab, select 'User Services.'
• Click on 'Furnish Letter of Undertaking (LUT).'

3. Select Financial Year:

• Choose the financial year for which the LUT is being filed.

4. Upload Required Details:

• Enter the details of the authorized signatory.
• Upload the necessary documents, including the LUT form.

5. Submit and E-Sign:

• Review the entered details carefully.
• Submit the application using an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC).

6. Acknowledgement:

• Upon successful submission, an acknowledgement will be generated.
• The approved LUT can be downloaded from the portal.

Advantages of Filing LUT for Exporters in Karnataka

Filing an LUT under GST offers several advantages for exporters in Karnataka:

• No IGST Payment: Exporters can smoothly ship goods or services without paying IGST, which makes the course of business easy and hassle-free and also eliminates the requirement for refunds.
• Improved Cash Flow: Since exporters don't have to block funds for tax payments, their working capital remains intact.
• Simplified Compliance: LUT filing simplifies GST compliance and also reduces the requirement of paperwork and administrative burden from the procedure of GST compliance.
• Faster Export Process: With an LUT in place, exporters can process shipments quickly without waiting for tax refunds.
• Cost Savings: Avoiding IGST payment reduces the overall cost of exports.
• Enhanced Business Competitiveness: By eliminating tax burdens, exporters can offer competitive prices in international markets.
• Reduced Documentation: Filing an LUT reduces the need for extensive documentation related to tax payments, refunds, etc.
• Ease of Doing Business: With simplified export procedures, exporters can focus more on business operations rather than tax compliance, which may hamper their business operations.

Validity of GST LUT

The validity of an LUT under GST is one financial year.  If an exporter fails to comply with the conditions mentioned in the LUT, such as the non-export of goods within three months from the invoice date, the LUT may be revoked, and IGST may become payable.

Why Choose Kanakkupillai to File GST LUT in Karnataka?

• Expert Guidance: We have a team of professionals with excellent experience, which ensures the path of your registration is smooth and error-free without any obstacle, safeguarding your business interests throughout the process, which will help you to grow your business in a fruitful manner.
• Hassle-Free Process: We will help you simplify your journey of filing and handling all miscellaneous formalities while saving you time and effort effectively and efficiently. We cover every step from beginning to end, from documentation to submission, and we've got it covered.
• Trusted for Compliance: Kanakkupillai isn't just a service provider who works for you like a family member; we're your reliable partner in GST compliance, which provides the best service with the support and trust of our team. Trust our expertise and professionals to handle your requirements with precautions and care.