What is Letter of Undertaking (LTU) for Export under GST?

What is Letter of Undertaking (LTU) for Export under GST?

Significance and significance of LTU for sends out under GST 

Under GST administration, there are just two courses conceivable to trade merchandise or administrations from India. The two routes are as per the following: 

Fare without installment of GST 

Fare with installment of GST. 

On the off chance that any citizen needs to send out without installment of IGST then he should need to record a bond or a letter of undertaking to the office. A letter of undertaking (LTU) is the reports arrangement of which is being endorsed under shape GST RFD 11 under lead 96A. 

In basic words, LTU is the record by which the citizen proclaims that he might satisfy all the necessity of the GST as to send out. 

Situations where letter of undertaking is recorded in GST 

Regarding notice no.16/2017, an enlisted individual might be qualified for accommodation of letter of undertaking set up of a bond in the event that he has gotten the remote internal settlement adding up to least of 10% of the fare turnover and which ought not be short of what one crore in the procedure money related year. 

Is recording of LTU is compulsory? 

Truly, if LTU isn't recorded, at that point you should need to charge IGST on the fare and the apply for the discount later on. 

Is documenting of LTU is obligatory notwithstanding for fare of administrations? 

Indeed, the documenting of LTU is even obligatory for fare of administrations, else you have to charge IGST on send out and later on apply for the discount.


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