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Why LUT (Letter of Undertaking) is Essential for KYC at ShipGlobal.in

kyc lut

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Table of Content

  1. What is a LUT (Letter of Undertaking)?
  2. How to Get a LUT if You Don’t Have One?
    1. Steps to Apply for a LUT
    2. Documents Required

What is a LUT (Letter of Undertaking)?

A Letter of Undertaking (LUT) is a document filed by exporters to avail themselves of the benefit of exporting goods or services without payment of IGST (Integrated Goods and Services Tax). It is an important document that ensures compliance with GST regulations and allows exporters to save on taxes, thereby improving cash flow.

Why Do You Need a LUT for KYC with ShipGlobal.in?

  • Tax Compliance: Ensures your business complies with Indian GST regulations, allowing for tax-free exports.
  • Financial Efficiency: Helps in maintaining liquidity by avoiding upfront IGST payments.
  • Credibility: Establishes your business as a registered exporter with proper documentation, essential for international trade.

Importance for Exporters

  • Cost Savings: Avoids the payment of IGST, which can be significant for large export orders.
  • Cash Flow Management: Maintains better cash flow by not tying up funds in tax payments.
  • Efficiency: Simplifies the process of setting up your account and starting your export journey with ShipGlobal.in.

How to Use Your LUT for KYC

  • Log into ShipGlobal.in: Access your account and go to the KYC section.
  • Upload LUT: Upload a clear photo or scan of your LUT document.
  • Verification: Our team will verify your details. This usually takes a few hours to a day.

Tips for a Smooth KYC Process

  • Clear Image: Ensure the photo or scan of your LUT is clear and readable.
  • Match Details: Ensure the business name on your LUT matches the information on your ShipGlobal.in account.

How to Get a LUT if You Don’t Have One?

Steps to Apply for a LUT

  • Visit the GST Portal: Go to the official GST website (www.gst.gov.in).
  • Login: Use your GSTIN and password to log into the portal.
  • Navigate to the LUT Application: Go to ‘Services’ > ‘User Services’ > ‘Furnish Letter of Undertaking (LUT)’.
  • Fill the Application Form: Complete the online form with the required details.
  • Select Financial Year: Choose the financial year for which you are filing the LUT.
  • Upload Documents: Attach necessary documents, such as the GST registration certificate and the authorization letter (if applicable).
  • Sign and Submit: Sign the application using a Digital Signature Certificate (DSC) or EVC (Electronic Verification Code) and submit it.

Documents Required

  • GST Registration Certificate: Proof of your GST registration.
  • Authorization Letter: If someone else is filing the LUT on behalf of the business, an authorization letter is required.
  • Other Relevant Documents: As specified by the GST authorities.

Start your export journey smoothly with ShipGlobal.in by completing your KYC with your LUT today!