RFD - LUT

Section: The provisions for filing RFD-11 are covered under Section 54(3) of the Central Goods and Services Tax Act, 2017.

Purpose: The purpose of RFD-11 is to furnish a Letter of Undertaking (LUT) for the export of goods or services without payment of Integrated Tax.

Applicability: RFD-11 is applicable to registered taxpayers who want to export goods or services without payment of Integrated Tax.

Timeline: RFD-11 needs to be filed before the beginning of the financial year in which the taxpayer intends to export without payment of Integrated Tax.

Exemption: Registered taxpayers who have not made any export supplies or have a turnover of less than Rs. 1 crore in the preceding financial year can furnish a bond instead of an LUT.

Penalty not doing: Failure to furnish RFD-11 or furnishing an incorrect LUT may attract a penalty equivalent to the amount of tax payable on the goods or services exported.

Due Date: The due date for filing RFD-11 is before the beginning of the financial year in which the taxpayer intends to export without payment of Integrated Tax.

Forms: RFD-11 is the form that taxpayers need to use to furnish an LUT for the export of goods or services without payment of Integrated Tax.

Reporting Authority: Taxpayers need to file RFD-11 themselves.

Other Details: Under GST, exports are treated as zero-rated supplies, which means that the exporter can claim a refund of the tax paid on the inputs used to produce the exported goods or services. Taxpayers who furnish an LUT for export without payment of Integrated Tax need to file RFD-01A to claim a refund of the input tax credit accumulated on the inputs and input services used in the goods or services exported. Additionally, the validity of the LUT furnished under RFD-11 is for a period of one year from the date of its acceptance.