Deemed approval of LUT under GST- No Physical Document Required

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In a recent circular issued by the Central Board of Indirect Taxes and Customs (CBIC), the board made clarifications on issues related to the furnishing of Bond / Letter of Undertaking ( LUT ) for exports. The circular clarified that a Letter of Undertaking ( LUT ) shall be deemed to be accepted as soon as an acknowledgement bearing the Application Reference Number, is generated online.

It further clarified that no documents are required to be physically submitted to the jurisdictional office for acceptance of LUT.

The Circular also stated that if an exporter’s LUT has been accepted and later if it was discovered that the exporter was ineligible to furnish a LUT in place of a bond, then the LUT will be liable for rejection and such LUT shall be deemed to have been rejected from the very beginning.

The Circular was issued upon receiving various queries from the field formations and exporters regarding a technical glitch that the LUTs submitted via online in FORM GST RFD-11 on the common portal were not visible to the jurisdictional officers of the Central Board of Indirect Taxes and Customs (CBITC) and of a few states.

Here is the complete Circular:

Disclaimer: Due care has been taken to draft this write-up and is intended to express the Authors understanding and to start an academic discussion on the subject discussed in above write-up. it should not be considered as professional advice. Readers are advised to refer to relevant provisions of law before applying any of the above-mentioned views. The author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the content of this write-up.

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