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Under GST Law, Export of goods or services can be made without payment of integrated tax under the provisions of rule 96A of the Central Goods and Services Tax Rules, 2017 (the CGST Rules). Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero-rated supplies.

The validity of the LUT

LUT issued will be valid up to end of financial year, Hence, at the end of financial year, the registered supplier needs to apply for the renewal of LUT for the next year in order to continue making the exports without the payment of IGST. (Circular No. 8/8/2017-GST)

Accordingly, LUT issued during the Financial year 2018-19 is about to expire on 31/03/2019 and every registered exporter who desires to export the goods or services without the IGST shall apply for renewal of Letter of Undertaking.

Step by step Procedure for Renewal of Letter of Understanding

The procedure for renewal is similar to the process of applying fresh LUT. Following are the steps for the renewal:

Click here to know the process of applying fresh LUT

1: Login to the GST portal, select Tab Service and go to User Services then, select “Furnishing Letter of Undertaking”

2: Select the Financial year 2019-2020 for which you want to renew the LUT.

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

4: Read and Select all the three checkboxes for accepting the conditions prescribed in Letter of Undertaking.

5: Enter the details of two Independent witnesses.

6: Select Authorised signatory and submit an application with EVC/DSC as the case may be.

7: Do not forget to download generated acknowledgment along with form.

A LUT shall be deemed to have been accepted as soon as an acknowledgment for the same, bearing the Application Reference Number (ARN), is generated online. (Circular No. 40/14/2018-GST)


Published by

CA Mayur Todmal
(Practicing CA)
Category GST   Report

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