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GST LUT Filing Made Simple
Letter of Undertaking (LUT) For Export

Export your goods or services without paying IGST. File your GST LUT (Letter of Undertaking) online with Setindiabiz for fast, hassle-free compliance. Start your application today and ensure uninterrupted exports under the legal framework of Section 16 of the IGST Act, 2017.

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What is LUT in GST? Understanding the Legal Framework

LUT stands for Letter of Undertaking, legally defined under Section 16 of the Integrated Goods and Services Tax Act, 2017 and implemented through Rule 96A of the CGST Rules, 2017. To understand why LUT is crucial for exporters, let's first understand how exports work under GST. Think of LUT as a trusted certificate – you promise to be a genuine exporter, and the government lets you skip the unnecessary tax payment cycle. It's valid for one financial year (April to March), and the entire process is online with automatic acceptance upon ARN generation as per Circular No. 40/14/2018-GST.Let's understand the concept behind LUT.

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1. The Export Challenge: Zero-Rated but Taxed?Exports are 'zero-rated supplies' under Section 16(1) of the IGST Act, meaning they should carry no GST burden. The government wants to encourage exports as they bring foreign currency into India. However, without LUT, the GST system requires you to first pay IGST on exports and then claim a refund – a contradictory approach to 'zero-rating.'
2.Here's the problemWhen you export goods worth ₹10 lakhs, you must charge 18% IGST (₹1.8 lakhs), pay it to the government, and then apply for a refund under Section 54 of the CGST Act. This refund takes 2-6 months, locking up your working capital unnecessarily.
3.LUT: Your Solution to Cash Flow FreedomThe Letter of Undertaking eliminates this cash flow problem entirely. Under Section 16(3) of the IGST Act, you can file an LUT once a year in Form GST RFD-11, promising to comply with all export regulations. Once filed, you can export throughout the year without paying IGST upfront – your ₹10 lakh export remains ₹10 lakhs, with no tax added.

Example: Export After Filing of LUT

  • Without a LUT, here's what happens: You export goods worth ₹10 lakhs, pay 18% IGST (₹1.8 lakhs), and then wait months for a refund under Section 54 of the CGST Act. That's ₹1.8 lakhs stuck in limbo when it could be working for your business. With a LUT filed under Form GST RFD-11 as prescribed in Rule 96A of CGST Rules, 2017? That money stays in your pocket from day one. We are here to help!

Who can file LUT in GST? Legal Eligibility Criteria

Let's cut through the confusion – GST LUT eligibility is straightforward and inclusive. The criteria are clearly defined in Notification No. 37/2017-Central Tax dated October 4, 2017, which opened this facility to almost all exporters. You're Eligible to File LUT If you meet the following eligibility conditions:

GST Registered Business

This is mandatory under Rule 96A of CGST Rules, 2017. Even if your turnover is below the threshold, you need GST registration to export and file LUT.

Export Goods or Services

This covers all types of exports as defined in Section 16(1) of the IGST Act, including Direct exports of goods or services to foreign clients, Supplies to special economic zones (SEZs), and Services provided to overseas clients (IT, consulting, freelancing, etc.).

Clean Compliance Record

You're eligible unless you've been prosecuted for tax evasion exceeding ₹2.5 crores under any Central Act. Note that it's 'prosecuted,' not merely accused or under investigation.

What If You're Not Eligible? If you fall into the small category of ineligible persons (prosecuted for major tax evasion), Rule 96A(1) provides an alternative – you can export by furnishing a bond with a bank guarantee. It's more complex but doesn't stop you from exporting. At Setindiabiz, we handle both LUT and bond filing, ensuring you're covered either way. Remember: If you're GST registered, planning to export, and haven't been prosecuted for major tax evasion, you're eligible for LUT. It's that simple.

Benefits of Filing LUT Under GST - Your Legal Advantages

When you file an LUT under GST, you unlock powerful advantages that directly impact your bottom line. These benefits flow from Section 16 of the IGST Act and Rule 96A of the CGST Rules, transforming how you conduct export business.

Zero IGST Payment

Keep Your Cash Working No more paying ₹9 lakhs IGST on ₹50 lakh exports and waiting months for refunds. Under Section 16(3) of the IGST Act, that money stays in your business from day one.

Competitive Global Pricing

Quote clean prices without the IGST burden. Your international clients see straightforward invoicing, helping you compete effectively against global suppliers.

One-Time Annual LUT Filing

Set It and Forget It Files the LUT once by March 31st for the next FY and exports unlimited times all year. Rule 96A ensures one filing covers your entire financial year.

Instant Online Approval

Start Exporting Today. Get your ARN in 20 minutes and start exporting immediately. Circular No. 40/14/2018-GST guarantees automatic acceptance upon submission.

Complete Legal Protection

Export with Confidence Operates with full legal backing under the IGST Act. No audit surprises, no tax disputes, just bulletproof compliance.

Enhanced Business Credibility

Build Trust Faster LUT signals you're a recognized exporter to international clients, banks, and customs. This institutional recognition accelerates business growth.

Documents Required for LUT Filing - Legal Checklist

Before diving into the process, let's ensure you have all documents required for LUT under GST as mandated by Rule 96A and clarified in various CBIC circulars. Here's your LUT filing checklist: Essential Documents (as per Form GST RFD-11 requirements):

  • 1
    GST Registration Certificate – Your GSTIN is mandatory under Rule 96A
  • 2
    KYC of Authorized Signatory – As per authentication requirements in the Rules
  • 3
    Previous Year's LUT – If renewing (PDF/JPEG, max 2MB as per portal specifications)
  • 4
    Authorisation Letter – Required under Rule 26 of CGST Rules
  • 5
    Witness Details

Note

  • Physical submission of documents for GST LUT filing is obsolete as per Circular No. 40/14/2018-GST, thereby rendering the process entirely online and paperless for operational efficiency. It is advised to prepare a digital repository encompassing all requisite documents for annual submission. Maintaining systematic documentation is advantageous.

Step-by-Step Procedure: How to File LUT in the GST Portal

Filing the Letter of Undertaking (LUT) in GST, as per Rule 96A, is an entirely online and straightforward process, typically completed within 20 minutes with immediate approval. This guide will provide a detailed, step-by-step walkthrough with practical advice to ensure a seamless and efficient filing experience.

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Step-1: Login to GST Portal

Navigate to www.gst.gov.in and log in with your GSTIN username and password. Ensure you have admin access or proper authorisation under Rule 26 of CGST Rules. The portal works best on Chrome or Firefox browsers. Once logged in, you'll see your main dashboard.

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Step-2: Navigate to LUT Section

To file the GST LUT, navigate the official GST portal Services → User Services → Furnish Letter of Undertaking (LUT). If this path is unclear, utilise the portal's search by entering "LUT" to locate the correct section. This method aligns with the standard GST portal structure.

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Step-3: Select Financial Year

Choose the financial year for which you're filing. Remember, each LUT covers one financial year (April 1 to March 31) as per Rule 96A. For renewals, you can file for the next year from mid-March onwards. Double-check your selection – once submitted, you cannot modify it.

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Step-4: Upload Previous LUT

If you're renewing, upload your previous year's LUT in PDF or JPEG format (max 2MB). First-time filers will skip this step automatically. Can't find last year's LUT? Download it from Services → User Services → View LUT before proceeding.

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Step-5: Add Witness Details

Enter details of two independent witnesses as required by Form GST RFD-11. These can be your employees, business partners, or CA. They don't need to be physically present or sign anything – you just need their complete names and addresses with PIN codes. The system validates PIN codes to ensure accuracy.

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Step-6: Self-Declaration

Understand that completing and submitting the declarations on this form is a serious legal matter. By checking the boxes, you acknowledge your responsibilities under Rule 96A. These include adhering to export regulations, keeping accurate records, and, if you miss export deadlines, paying the applicable tax with interest. Take these obligations seriously, as they carry significant legal weight and aren't merely routine steps.

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Step-7: Self-Declaration

To complete the GST LUT filing process, please select the authorized signatory from the provided dropdown menu. Subsequently, choose the preferred signing method: Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). For DSC, if already registered, connect the token and input the Personal Identification Number (PIN). Alternatively, for EVC, the system will dispatch a One-Time Password (OTP) to the registered mobile number. EVC is recommended for users who do not possess a readily available DSC. Kindly note that the OTP is valid for a duration of 15 minutes; therefore, ensure your mobile device is accessible.

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Step-8: Submit and Download

Click submit after reviewing all details. Your LUT is deemed accepted immediately upon submission as per Circular No. 40/14/2018-GST. The system generates an ARN (Acknowledgment Reference Number) instantly.

NOTE

  • Download the LUT certificate PDF immediately. This is your official document for the entire year – you'll need it for banks, customs, and your records. Save multiple copies and share them with your finance and export teams. The entire process of applying LUT in GST requires no fees no waiting period, and provides instant compliance. Set a reminder for next March to renew – LUT validity is strictly one financial year, and exporting without valid LUT means paying IGST upfront.

GST LUT Renewal - Legal Timeline and Process

Here's something many exporters forget – GST LUT renewal isn't automatic. Your LUT validity is exactly one financial year as specified in Rule 96A, not a day more. Start your renewal process in March itself. The GSTN typically enables the functionality by March 15. Don't wait until April 1st – the portal will get crowded, and you don't want export delays. Without a valid LUT, you'll need to pay IGST on exports from April 1st as per Section 16 of the IGST Act. That's working capital locked up unnecessarily. Set a reminder for March 15th every year – your future self will thank you.

How to renew LUT in GST : The renewal process follows the same procedure under Rule 96A. You'll upload your previous LUT as required by Form GST RFD-11. Same steps, same simplicity, but don't let the deadline sneak up on you. As per various advance rulings, exports made without valid LUT attract interest under Section 50 of the CGST Act at 18% per annum, along with the IGST@18%

Frequently Asked Questions