Letter of undertaken

Follow 9 Replies

CA sanjay Kumar 10 February 2021

sir iam doing business of export sales with letter of undertaken (LUT).I have 14 lakhs ITC credit.iam in the category of without payment of tax..so could I modify my export sales to without LUT which means with payment of tax for getting my input credit...then again could I migrate to LUT ????

could you please tell me

CA sanjay Kumar 10 February 2021

CA Subba Reddy Bonam (Practising chartered accountant) 10 February 2021

Dear Mr. Sanjay,

There is no need of any migration both with payment or without payment (LUT) are Zero rated supplies.

You can opt some supplies with payment and some without payment option. You need to mention in the invoice that what option you have taken and accordingly disclose in your monthly returns.

CA sanjay Kumar 10 February 2021

My honourable CA sir thanks for your reply,could I claim my ITC 14 lakhs asusual .

CA Subba Reddy Bonam (Practising chartered accountant) 10 February 2021

Yes you can claim

1 Like

CA sanjay Kumar 10 February 2021

Sir generally for what purpose this LUT

CA Subba Reddy Bonam (Practising chartered accountant) 10 February 2021

Dear Sir,

It is like a bond / self declaration, which (LUT) is to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that they would fulfil all the requirements prescribed under GST while exporting without making IGST payment. In case of non export then tax along with interest needs to be paid.

1 Like