Our CA forgot to file LUT in GST. What should We do now?

[avishake]

Hi,
Our CA overlooked the requirement to file a Letter of Undertaking (LUT) under GST. Our company's GST registration was completed in December 2022. We now realize that since we are exporting services and receiving all our income from outside India via bank transfers, we should have filed an LUT. Although we have not received any notice from the GST department, we are concerned about whether filing the LUT now might affect previous transactions or lead to increased penalties. What should we do to address this situation and minimize any potential issues?

 

[TaxWiser]

Hi,
Our CA overlooked the requirement to file a Letter of Undertaking (LUT) under GST. Our company's GST registration was completed in December 2022. We now realize that since we are exporting services and receiving all our income from outside India via bank transfers, we should have filed an LUT. Although we have not received any notice from the GST department, we are concerned about whether filing the LUT now might affect previous transactions or lead to increased penalties. What should we do to address this situation and minimize any potential issues?

Hi there,
It's understandable to be concerned about this oversight. Here's what you can do to address the situation and minimize potential issues:

Steps to Take​

1. File the LUT Immediately: Submit the LUT for the current financial year as soon as possible. This will help you avoid future complications and ensure compliance moving forward.
2. Consult Your CA: Discuss the situation with your Chartered Accountant to understand the specific implications for your past transactions. They can provide tailored advice based on your company's financial details.
3. Voluntary Disclosure: Consider voluntarily disclosing the oversight to the GST department. This proactive approach can sometimes lead to leniency in penalties.
4. Review Past Transactions: Check if any GST was paid on your export services. If so, you might be eligible to claim a refund. Your CA can assist with this process.
5. Monitor for Notice: Keep an eye out for any notices from the GST department. If you receive one, respond promptly with the help of your CA.

Potential Penalties​

• Interest and Penalties: If the GST department finds that you should have filed an LUT earlier, they may impose interest and penalties on the unpaid GST.
• Regularization: Filing the LUT now and addressing any past dues can help regularize your compliance status and potentially reduce penalties.

By taking these steps, you can address the oversight and minimize any potential issues. If you need more detailed guidance, consulting with a tax professional is always a good idea.

(Source: Conversation with Gemini AI)

 

[avishake]

Hi there,
It's understandable to be concerned about this oversight. Here's what you can do to address the situation and minimize potential issues:

Steps to Take​

1. File the LUT Immediately: Submit the LUT for the current financial year as soon as possible. This will help you avoid future complications and ensure compliance moving forward.
2. Consult Your CA: Discuss the situation with your Chartered Accountant to understand the specific implications for your past transactions. They can provide tailored advice based on your company's financial details.
3. Voluntary Disclosure: Consider voluntarily disclosing the oversight to the GST department. This proactive approach can sometimes lead to leniency in penalties.
4. Review Past Transactions: Check if any GST was paid on your export services. If so, you might be eligible to claim a refund. Your CA can assist with this process.
5. Monitor for Notice: Keep an eye out for any notices from the GST department. If you receive one, respond promptly with the help of your CA.

Potential Penalties​

• Interest and Penalties: If the GST department finds that you should have filed an LUT earlier, they may impose interest and penalties on the unpaid GST.
• Regularization: Filing the LUT now and addressing any past dues can help regularize your compliance status and potentially reduce penalties.

By taking these steps, you can address the oversight and minimize any potential issues. If you need more detailed guidance, consulting with a tax professional is always a good idea.

(Source: Conversation with Gemini AI)

Thanks for your response.