GST LUT Filing in India
Evolution of GST LUT Regulations
India's Goods and Services Tax (GST) framework has undergone significant changes to simplify compliance for businesses.
In 2017, exporters had to pay Integrated Goods and Services Tax (IGST) before shipping goods. This caused liquidity constraints, forcing exporters to wait for refunds.
To ease this burden, Notification 37/2017 allowed exports without IGST payments. However, businesses must submit a Letter of Undertaking (LUT) to avail of this benefit.
This LUT framework has streamlined export transactions. Businesses can now operate without upfront tax payments, making international trade smoother and improving cash flow.
What is a Letter of Undertaking (LUT)?
A Letter of Undertaking (LUT) is a legal declaration submitted by exporters to the government for tax-free exports.
It remains valid for one financial year, requiring annual renewal. Businesses benefit from zero GST liability when exporting under an LUT.
When is LUT Filing Required?
- Export of Goods and Services: Businesses exporting internationally must file an LUT to avoid IGST payments.
- Supplies to SEZs: Zero-rated GST benefits apply when supplying to Special Economic Zones (SEZs).
By filing an LUT, exporters avoid refund claims, making international trade more efficient.
Key Benefits of LUT Filing
✔ No Upfront IGST Payments – Ensures smooth cash flow for exporters.
✔ Simplified Tax Compliance – No need to file tax refund claims.
✔ Optimized Working Capital – Funds remain available for business operations.
✔ Less Administrative Hassle – An LUT remains valid for one year, reducing paperwork.
Exporters can focus on business growth rather than tax formalities!
Who is Eligible for GST LUT Filing?
To file an LUT, a business must:
✅ Be a registered GST taxpayer.
✅ Export goods/services or supply to SEZs.
❌ Not be involved in tax evasion cases exceeding ₹2.5 crores.
Meeting these conditions allows exporters to benefit from tax-exempt international trade.
Exporters opting to file an LUT unlock a multitude of advantages:
- Tax-Free Export Transactions: Avoidance of upfront IGST payments ensures uninterrupted trade activities.
- Simplified Compliance: Eliminates the need for refund claims and prolonged interactions with tax authorities.
- Optimized Working Capital: Retains funds within business operations instead of tying them up in tax payments.
- Reduced Administrative Burden: Since an LUT remains valid for an entire fiscal year, frequent re-filing is unnecessary.
By capitalizing on these benefits, exporters can optimize cash flow, minimize bureaucratic hurdles, and drive business expansion with greater flexibility.
Entities eligible to apply for a GST LUT must meet the following conditions:
- The applicant must be a registered GST taxpayer.
- Intent to supply goods/services domestically or to overseas markets, including SEZs.
- Businesses prosecuted for tax evasion exceeding Rs. 2.5 crores are ineligible to file an LUT.
Meeting these prerequisites ensures businesses can execute tax-exempt exports efficiently under GST regulations.
To successfully file an LUT, businesses need:
📌 GST Registration Certificate – Proof of GST registration.
📌 PAN Card – Identity verification.
📌 Export Business Details – Turnover, goods/services description.
📌 LUT Cover Letter – Signed request for LUT approval.
📌 Bank Details – Canceled cheque or statement.
📌 GST RFD-11 Form – Available on the GST portal.
📌 IEC Code – Import Export Code.
📌 Authorization Letter – If signed by an authorized representative.
📌 Board Resolution/Partnership Deed – For companies and partnerships.
📌 Self-Declaration – Confirming GST compliance and no pending tax dues.
GST officers may request additional documents based on business specifics.
Filing your Letter of Undertaking (LUT) on time is essential to keep your export operations running smoothly and stay compliant with GST rules. Here's a simple guide to help you complete the process seamlessly:
Step 1: Log In to the GST Portal
- Open your web browser and visit the official GST Portal.
- Click the “Login” button at the top-right corner of the homepage.
- Enter your GSTIN and password, then hit "Sign In."
- Authentication: If asked, enter the OTP sent to your registered mobile or email to complete the login.
Step 2: Go to the LUT Filing Section
- Once logged in, you’ll land on your Dashboard.
- From the top menu, click on “SERVICES” and select “User Services.”
- From there, choose "Furnish Letter of Undertaking (LUT)."
Step 3: Choose the Financial Year
- In the LUT submission form, look for the dropdown labeled "LUT Applied for Financial Year."
- Select "2025-26" from the list of available options.
- Upload Previous LUT: If you’ve filed an LUT previously, upload a copy (PDF or JPEG, max 2 MB).
Step 4: Complete the Application Form
- Fill out the GST RFD-11 Form: Enter the required details.
- Self-Declaration: Tick the checkboxes to confirm your commitments:
- Export commitment: Ensure exports happen within 3 months of the export invoice date.
- GST law compliance: Agree to follow all GST rules related to exports.
- IGST Payment: Commit to paying IGST (along with interest) if exports don’t happen as per the requirements.
- Witness Information: Add the details (name, occupation, address) of two independent witnesses. Note, these must match the details in your Bond/Bank Guarantee.
Step 5: Review and Preview Your Application
- Enter the Place of Filing as required.
- Click “SAVE” to store your progress.
- Use the “PREVIEW” button to double-check the form before submission. Revisions can’t be made once submitted.
Step 6: Sign and Submit Your Form
You can submit the form either with a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC):
DSC (For Companies/LLPs):
- Click "SIGN AND FILE WITH DSC."
- A warning will pop up—click “PROCEED”.
- You’ll receive an Application Reference Number (ARN) once submitted.
EVC (For Sole Proprietors and others):
- Click "SIGN AND FILE WITH EVC."
- An OTP will be sent to the authorized signatory’s phone and email.
- Enter the OTP and click “PROCEED” to submit the form. You’ll receive an ARN after submission.
Note: Companies and LLPs must use DSC, while sole proprietors and others can use EVC.
Step 7: Confirmation and Acknowledgment
- You’ll see a confirmation message on the screen.
- The ARN will be sent to your registered email and mobile number.
- Click "DOWNLOAD" to get your acknowledgment receipt.
- To view past LUTs, go to:
- Dashboard > SERVICES > User Services > View my Submitted LUTs.
- Select the period and click “VIEW” to access previous LUTs.
Filing LUT (Letter of Undertaking) for exporters can be a complex and time-consuming process. At Filingin, we simplify this for you, allowing you to focus on growing your export business. Our team of experts has a deep understanding of GST regulations and is equipped to guide you through the efficient submission of the GST RFD-11 form. From document preparation to online filing, we offer comprehensive support to ensure accuracy and compliance at every step. With Filingin, you can access the benefits of tax-free exports without the stress of handling intricate procedures. Let us take the hassle out of your GST LUT filing so you can begin a smoother, more efficient export journey.
Reach out to us today for a seamless and stress-free GST LUT filing process that boosts your export ventures.
Frequently Asked Questions in India
What details must be furnished in an GST LUT?
The taxpayer’s GSTIN, legal name, and financial year for which the LUT is filed, along with two independent witnesses’ information.
Is manual approval of GST LUT required for online submission?
No, but taxpayers may record manually approved LUTs in the online system if preferred.
Who is authorized to sign an GST LUT?
A proprietor, managing director, partner, company secretary, or authorized representative can sign the LUT using DSC/EVC.
How to confirm successful GST LUT filing?
Upon submission, an ARN and acknowledgment receipt will be issued via email and SMS.
Can taxpayers view GST LUT applications post-filing?
Yes, submitted LUTs are accessible under the GST portal’s View My Submitted LUTs section.
Is GST LUT filing mandatory for exporters?
Yes, an LUT is compulsory for exporting goods/services without paying IGST.
What happens if an GST LUT is not submitted?
The exporter must pay IGST on exports and later claim a refund under zero-rated supply provisions.
Who is ineligible for GST LUT filing?
Businesses prosecuted for tax evasion exceeding Rs. 2.5 crores cannot file an LUT.
What is Form RFD-11?
Form RFD-11 is the official LUT submission form under GST.
What is the full form of LUT?
LUT stands for Letter of Undertaking, a document enabling tax-free exports under GST norms.
