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The Letter of Undertaking, also known as the LUT Bond, is a document
submitted by an exporter to be exempt from paying IGST on exports. To increase exports, the
government has given exporters the option to file a LUT and conduct exports without paying IGST.
Most small merchants struggle with a severe lack of liquidity, thus to address this issue, the
government provided the option of submitting a LUT Bond, which allows traders to undertake
exports while paying 0% IGST as long as they are crystal clear about their goal.
LUTs may be used by any registered taxpayer who is exporting goods or services. However, the act prohibits anyone who has been charged with tax evasion for an amount of Rs. 2.5 crores or more from providing LUTs. Also, such LUTs have a one-year validity duration (till the end of the financial year). However, to receive a certificate for the LUT Bond Registration, an exporter who submits LUTs must submit a new LUT for each fiscal year. If the LUT's stated requirements are not met promptly, the exporter's licenses are terminated and bonds are required.
Legal Raasta will assist you in obtaining a LUT Bond Registration Certificate and in easing the hassle of creating a Letter of Undertaking (LUT). Our knowledgeable team will give you the best guidance and complete all of your paperwork on your company's behalf. So, don't waste time and apply for a LUT Bond with us right away.
1. Logging into your profile on the GST portal to obtain a Letter of Undertaking (LUT) Registration certificate is the first step in providing a LUT in the GST refund procedure.
2. The first step after choosing this is choosing the financial year for the LUT Bond Registration Certificate.
3. The fundamental information regarding the export of products or services must then be included in a self-declaration.
4. You must enter the names, occupations, and addresses of two separate witnesses in addition to the filing location.
5. The application can be signed using an electronic verification code or a recognized digital signature certificate.
6. At the GST portal, you may download the letter of undertaking the LUT Bond Registration Certificate application.
An exporter can export products and services without paying taxes by choosing the LUT.
Exporters won't have to bother requesting a refund or following up with the IT department thanks to the LUT.
Regular exporters can also benefit from the LUT Bond Registration certificate because it is valid for the full fiscal year and can be obtained online with ease.
All registered individuals are now eligible to use the export facility under the Letter of Undertaking, but those who have been charged with crimes involving sums greater than Rs. 250 lakhs will need to post bail. If you wish to receive a LUT bond registration certificate, a bond must always be supported by a bank guarantee of 15% of the bond's total amount.
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