Expert Legal Advice for Your Business annual compliance
Filing of LUT in GST
Eligibility Criteria for LUT registration
Eligibility Criteria for LUT registration
Eligibility Criteria for LUT registration
The Eligibility criteria to obtain a LUT certificate include the following:
The Letter of Undertaking (LUT) is open for utilization by any registered taxpayer engaged in exporting goods and services. However, individuals facing prosecution for tax evasion exceeding Rs. 250 lakh or more are ineligible to benefit from this option.
- Intent to Supply: The applicant should intend to supply goods or services within India, to foreign countries, or to Special Economic Zones (SEZs).
- GST Registration: The entity seeking to avail the benefits of an LUT should be registered under the GST framework.
- Tax-Free Supply: The desire to supply goods without the imposition of integrated tax is an essential requirement for LUT application.
Understanding LUT in GST
Eligibility Criteria for LUT registration
Eligibility Criteria for LUT registration
LUT full form is Letter of Undertaking holds significant relevance within the context of the Goods and Services Tax (GST) framework. This document serves as a powerful tool for exporters, allowing them to engage in the export of goods or services without the obligation of immediate tax payment.
Exploring the LUT Bond
Eligibility Criteria for LUT registration
Exploring the LUT Bond
LUT in GST holds a validity of one year, necessitating the submission of a fresh LUT for each subsequent financial year. Should the terms outlined in the LUT fail to be met within the designated timeframe; the privileges associated with it will be withdrawn, prompting the need for the exporter to provide bonds.
For other assessments, bonds are required when conducting exports without Integrated Goods and Services Tax (IGST) payment. LUTs and bonds are applicable in the following cases:
- Zero-rated supply to SEZ: Exporting to Special Economic Zones (SEZs) without IGST payment.
- Goods Export: Exporting goods to a country beyond India without IGST payment.
- Service Export: Providing services to clients in foreign countries without IGST payment.
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