LUT will be valid for a financial year.
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All registered tax payers who export the goods or services will now have to furnish Letter of Undertaking (LUT) in GST RFD-11 form on the common portal of GSTN in order to make exports without payment of IGST.
LUT will be valid for a financial year. If LUT was furnished in FY 2019-20, then the date of expiry of the validity of such LUT is 31st March 2020. Therefore, You need to furnish fresh LUT for FY 2020-21.
The motive of any developing economy’s government is to expand its export base. The rationale for the same is to maintain the balance of payments, create job opportunities and boost economic growth.
By providing certain benefits and reliefs on exports, the government promotes the trade. The exporters can avail these benefits and reliefs and thus undertake a free-flowing and beneficial trade.
On the same note, the government provides certain benefits under the GST regime to exporters.