Key Pointers –

• Letter of Undertaking or LUT is prescribed to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment.
• The functionality can be accessed at: Dashboard > Services > User Services > Furnish Letter of Undertaking> Select FY & apply
• The LUT facility has been extended to all registered persons who intend to supply goods or services for export without paying integrated tax, except those who have been prosecuted for any offense under the CGST and the Integrated Goods, and Services Tax Acts, 2017 or any other existing law, and the amount of tax evaded in such cases exceeds ₹250 lakh.
• In the Union Budget 2021, the Government suggested that refunds of GST paid on products and/or services exported be limited to recognized taxpayers or commodities/services. Resultantly, many enterprises that previously claimed a tax rebate on export supplies would now have to resort to exports without paying tax under a Bond or Letter of Undertaking and then claim reimbursement of unutilized input credits.