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LUT / Bond for Exports (Under GST)

What is LUT?

LUT (Letter of Undertaking) is a declaration furnished by an exporter to the GST department stating that they will export goods or services without payment of IGST and comply with GST rules.

It allows exporters to avoid blocking working capital by not paying IGST upfront.

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What is a Bond?

A Bond is a financial guarantee furnished when an exporter is not eligible to file LUT.
It requires a bank guarantee as security.

📌 Most exporters file LUT; Bond is required only in special cases.

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Why is LUT / Bond Required?

• ✅ To export goods or services without payment of IGST

• ✅ To improve cash flow

• ✅ To simplify GST export compliance

• ✅ To avoid IGST refund process

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Who Can File LUT?

• Registered exporters under GST

• Exporters of goods

• Exporters of services

• SEZ suppliers

📌 All exporters can file LUT except those prosecuted for tax evasion above prescribed limits.

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Validity of LUT

• Valid for one financial year

• Must be renewed every year

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Documents Required for LUT Filing

• GST Registration Certificate

• PAN Card

• IEC (Import Export Code)

• Authorized signatory details

• Digital Signature / EVC

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Process of Filing LUT

1. Login to GST portal

2. Select LUT option (Form GST RFD-11)

3. Fill required details

4. Submit using DSC or EVC

⏱️ Timeline: Same day approval (online)

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Bond Filing Process (If LUT Not Allowed)

1. Estimate tax liability

2. Execute bond on non-judicial stamp paper

3. Submit bank guarantee

4. Approval by GST officer

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Important Conditions

• Exports must be completed within 3 months (goods)

• Export proceeds must be realized within prescribed period

• Failure leads to payment of tax with interest

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Difference Between LUT and Bond

GST Notice Resolution

What is a GST Notice?

A GST notice is a formal communication from the GST department issued when there is a mismatch, delay, error, or non-compliance in GST returns, payments, or records.

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Common Reasons for GST Notices

• ❗ Late or non-filing of GST returns

• ❗ Difference between GSTR-1, GSTR-3B, and GSTR-2B

• ❗ Excess or wrong ITC claimed

• ❗ Short payment of GST

• ❗ E-way bill or turnover mismatch

• ❗ Cancellation or suspension related issues

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Types of GST Notices

• ASMT-10 – Return discrepancy notice

• DRC-01 / DRC-01A – Tax demand / SCN

• GSTR-3A – Non-filing of returns

• REG-17 – GST cancellation notice

• CMP-05 – Composition scheme notice

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Why Timely GST Notice Resolution is Important

• ✅ Avoid penalties and interest

• ✅ Prevent GST registration cancellation

• ✅ Maintain compliance record

• ✅ Reduce litigation risk

• ✅ Ensure smooth business operations

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GST Notice Resolution Process

1. Review the notice and identify the issue

2. Collect relevant data & documents

3. Reconcile returns and records

4. Prepare a proper reply with explanations

5. File reply on GST portal within due date

6. Pay tax / interest / penalty, if applicable

7. Follow up until closure

📌 Each notice has a strict reply deadline.

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Documents Required

• GST login credentials

• GST returns (GSTR-1, 3B, 2B)

• Purchase & sales data

• E-way bills (if applicable)

• Bank statements

• Supporting invoices

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Our GST Notice Resolution Support Includes

• Notice analysis & risk assessment

• Return reconciliation

• Drafting and filing of replies

• Payment computation & challan filing

• Personal hearing support (if required)

• Closure confirmation

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Important Tip

⚠️ Never ignore a GST notice.
Delayed or incorrect replies can lead to heavy penalties, interest, or cancellation of GST registration.

GST Revocation of Cancellation

What is GST Revocation?

GST Revocation is the process of restoring a cancelled GST registration when the cancellation was done by the GST department (suo-moto) due to non-compliance such as non-filing of returns or non-payment of tax.

📌 Revocation is not applicable if the taxpayer has voluntarily cancelled GST.

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Common Reasons for GST Cancellation

• ❗ Non-filing of GST returns for long period

• ❗ Non-payment of GST liability

• ❗ Business not operating from registered address

• ❗ Non-response to GST notices

• ❗ Violation of GST provisions

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Why GST Revocation is Important

• ✅ Restart business legally

• ✅ Issue tax invoices again

• ✅ Claim Input Tax Credit (ITC)

• ✅ Avoid heavy penalties

• ✅ Continue compliance smoothly

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Time Limit for GST Revocation

• Application must be filed within 30 days from the date of cancellation order

• Time limit may be extended by authorities as per notifications (case-to-case)

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Documents Required

• GST login credentials

• Pending GST returns (GSTR-1, 3B, etc.)

• Tax, interest & late fee payment proof

• Explanation for default

• Supporting documents (if any)

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GST Revocation Process

1. File all pending GST returns

2. Pay tax, interest, and late fees

3. Apply for revocation in Form GST REG-21

4. Officer reviews the application

5. Reply to query (if issued in REG-23)

6. Revocation order issued in REG-22

⏱️ Timeline: 7–15 working days (subject to department)

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Important Conditions

• All past non-compliances must be cleared

• Regular filing of returns is mandatory post-revocation

• Any delay may lead to rejection

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Difference: Revocation vs New GST Registration

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Important Tip

⚠️ Do not delay GST revocation.
If time limit expires, the only option left may be fresh GST registration, which can affect ITC and business continuity.