{"id":2127,"date":"2025-12-04T06:39:16","date_gmt":"2025-12-04T06:39:16","guid":{"rendered":"https:\/\/www.iiiem.in\/blog\/?p=2127"},"modified":"2025-12-15T05:02:32","modified_gmt":"2025-12-15T05:02:32","slug":"process-of-lut-under-gst-step-by-step-process-to-apply-for-lut-series-2","status":"publish","type":"post","link":"https:\/\/www.iiiem.in\/blog\/process-of-lut-under-gst-step-by-step-process-to-apply-for-lut-series-2\/","title":{"rendered":"Process of LUT under GST &#8211; Step-by-step process to apply for LUT &#8211; Series 2"},"content":{"rendered":"<h2><strong>Documents and Process for using GST under LUT<\/strong><\/h2>\n<h3>Documents Required for LUT Under GST<\/h3>\n<p>To apply for a LUT online registration under GST, you&#8217;ll need the following documents:<\/p>\n<ul>\n<li>LUT Cover Letter signed by an authorized person.<\/li>\n<li>Copy of GST Registration containing GSTIN<\/li>\n<li>PAN Card of entity for Identification.<\/li>\n<li>KYC of Authorized Person (sole Proprietor or the Director or Partner)<\/li>\n<li>Authorization letter<\/li>\n<\/ul>\n<h3><strong>Pre-Export Compliance with LUT (Process)<\/strong><\/h3>\n<h4>Step 1: Ensure Valid LUT is in Place<\/h4>\n<ul>\n<li><strong>Action:<\/strong> Verify that your LUT (Form GST RFD-11) is filed and valid for the current financial year. The LUT must be filed <strong>before<\/strong> the date of the export invoice.<\/li>\n<li><strong>Proof:<\/strong> You should have the <strong>Application Reference Number (ARN)<\/strong> generated by the GST portal.<\/li>\n<\/ul>\n<h4>Step 2: Procure Goods at Concessional Rate (0.1% GST)<\/h4>\n<ul>\n<li><strong>Action:<\/strong> Place the purchase order (P.O.) with your registered domestic supplier.<\/li>\n<li><strong>Condition:<\/strong> Provide a <strong>declaration<\/strong> to the supplier stating that the goods are being purchased for export and will be exported within <strong>90 days<\/strong> from the date of the supplier&#8217;s invoice.<\/li>\n<li><strong>Invoice:<\/strong> The supplier issues a <strong>Tax Invoice<\/strong> charging GST at the concessional rate of <strong>1% IGST<\/strong> (or 0.05% CGST + 0.05% SGST if Intra-state).<\/li>\n<li><strong>Compliance:<\/strong> You must be registered with an Export Promotion Council (EPC) or Commodity Board.<\/li>\n<\/ul>\n<h4>Step 3: Inform Supplier&#8217;s Tax Officer<\/h4>\n<ul>\n<li><strong>Action:<\/strong> Send a copy of the Purchase Order (P.O.) placed at the concessional rate to the <strong>Jurisdictional Tax Officer of the Manufacturer\/Supplier<\/strong>.<\/li>\n<\/ul>\n<h3>2.\u00a0 Export Documentation &amp; Shipment<\/h3>\n<h4>Step 4: Raise the Export Invoice<\/h4>\n<ul>\n<li><strong>Action:<\/strong> Issue the <strong>Export Invoice<\/strong> addressed to your foreign buyer.<\/li>\n<li><strong>Mandatory Endorsement:<\/strong> The invoice must clearly state: <strong>&#8220;Supply meant for Export without payment of IGST under Letter of Undertaking (LUT)&#8221;<\/strong> and reference your <strong>LUT ARN and date.<\/strong><\/li>\n<li><strong>Note:<\/strong> This invoice is raised at <strong>zero-rate<\/strong> (0% IGST).<\/li>\n<\/ul>\n<h4>Step 5: File the Shipping Bill<\/h4>\n<ul>\n<li><strong>Action:<\/strong> File the Shipping Bill (SB) with Customs through your Custom House Agent (CHA). The SB is the crucial document that proves export.<\/li>\n<li><strong>Crucial Linkage:<\/strong> The Shipping Bill <strong>must<\/strong> clearly mention:\n<ul>\n<li>That the export is being made <strong>&#8220;Without Payment of IGST&#8221;<\/strong> (by ticking the LUT\/Bond option).<\/li>\n<li>The <strong>GSTIN and Tax Invoice Number of your domestic Supplier<\/strong> (the one who charged you 0.1% GST) to link the concessional purchase to the final export.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4>Step 6: Clearance and Shipment<\/h4>\n<ul>\n<li><strong>Action:<\/strong> Customs clearance, sealing, and shipment of goods.<\/li>\n<li><strong>Proof of Shipment:<\/strong> The goods leave India, and the carrier (shipping line\/airline) files the <strong>Export General Manifest (EGM)<\/strong> or <strong>Export Report<\/strong> with Customs.<\/li>\n<\/ul>\n<h3>3.Post-Export Compliance &amp; Refund<\/h3>\n<h4>Step 7: Proof of Export to Manufacturer\/Supplier<\/h4>\n<ul>\n<li><strong>Action:<\/strong> As discussed, you must immediately provide the following documents to the <strong>Manufacturer\/Supplier<\/strong> and their <strong>Jurisdictional GST Officer<\/strong>:\n<ul>\n<li>A copy of the <strong>Shipping Bill\/Bill of Export<\/strong> (You may redact the consignee\/importer name for commercial confidentiality, but must show the supplier&#8217;s invoice details).<\/li>\n<li>Proof of filing the EGM\/Export Report.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Deadline:<\/strong> You must complete the export (shipment) and provide this proof <strong>within 90 days<\/strong> of the supplier&#8217;s invoice date.<\/li>\n<\/ul>\n<h4>Step 8: GST Return Filing<\/h4>\n<ul>\n<li><strong>GSTR-1:<\/strong> File GSTR-1 for the relevant tax period and report the export details (invoice number, value, destination, etc.) in Table 6A (Exports), selecting the &#8220;Without Payment of Tax&#8221;<\/li>\n<li><strong>GSTR-3B:<\/strong> File GSTR-3B, declaring the zero-rated supply in Table 3.1(b) and showing the <strong>1% IGST<\/strong> paid on procurement as eligible Input Tax Credit (ITC) in Table 4(A)(1).<\/li>\n<\/ul>\n<h4>Step 9: Claim ITC Refund<\/h4>\n<ul>\n<li><strong>Action:<\/strong> After filing GSTR-1 and GSTR-3B, file an online application for refund in <strong>Form GST RFD-01<\/strong> on the GST Portal.<\/li>\n<li><strong>Select Category:<\/strong> Choose the category: <strong>&#8220;Refund of unutilized Input Tax Credit (ITC) on account of zero-rated supplies made without payment of tax.&#8221;<\/strong><\/li>\n<li><strong>Processing:<\/strong> The GST officer will process the claim and refund the accumulated ITC (the 0.1% IGST you paid to your supplier, plus any other ITC on services\/inputs) to your bank account.<\/li>\n<\/ul>\n<p><strong>The LUT route, when combined with the 0.1% concessional purchase, is highly beneficial as it ensures minimal cash is blocked in tax payments.<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Documents and Process for using GST under LUT Documents Required for LUT Under GST To apply for a LUT online registration under GST, you&#8217;ll need the following documents: LUT Cover Letter signed by an authorized person. Copy of GST Registration containing GSTIN PAN Card of entity for Identification. KYC of Authorized Person (sole Proprietor or\u2026 <span class=\"read-more\"><a href=\"https:\/\/www.iiiem.in\/blog\/process-of-lut-under-gst-step-by-step-process-to-apply-for-lut-series-2\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":2128,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[413,1],"tags":[414],"class_list":["post-2127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst-lut-indirect-tax-international-business-export-import","category-iiiem","tag-gst-lut-indirect-tax-export-import-international-business"],"_links":{"self":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts\/2127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/comments?post=2127"}],"version-history":[{"count":1,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts\/2127\/revisions"}],"predecessor-version":[{"id":2129,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts\/2127\/revisions\/2129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/media\/2128"}],"wp:attachment":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/media?parent=2127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/categories?post=2127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/tags?post=2127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}