If you’re exporting goods or services from India, you don’t always have to pay IGST on your exports.
The Letter of Undertaking (LUT) under Rule 96A of the CGST Rules, 2017 allows exporters to ship goods or provide services without paying IGST and still claim Input Tax Credit (ITC).
This blog explains what LUT is, who can apply, how to file it on the GST portal, and what every business should know for 2025.
1. What is an LUT under GST?
An LUT (Letter of Undertaking) is a self-declaration filed by an exporter stating that they will comply with all export requirements under the GST law.
By submitting an LUT, exporters can supply goods or services without paying Integrated GST (IGST) and avoid blocking working capital.
2. Legal Reference
Section 16 of the IGST Act, 2017 – Exports are considered “zero-rated supplies.”
Rule 96A of the CGST Rules, 2017 – Allows export without IGST payment through LUT.
Notification No. 37/2017 – Central Tax – Prescribes the conditions and form (GST RFD-11) for LUT filing.
3. Who Can Apply for LUT?
You can apply for an LUT if you are:
An exporter of goods or services, or
A supplier to SEZ (Special Economic Zone) units or developers, and
You have not been prosecuted for tax evasion exceeding ₹250 lakh under any GST law.
If you don’t meet these conditions, you can still export under a Bond by paying IGST and later claiming a refund.
4. Benefits of Filing LUT
| Benefit | Description |
|---|---|
| No IGST payment | Export goods/services without paying tax upfront. |
| Better cash flow | No need to block funds waiting for refunds. |
| Simplified compliance | Single online filing once a year. |
| Full ITC claim | Continue claiming input tax credit on purchases. |
5. Validity and Renewal
LUT is valid for one financial year.
It must be renewed every year before exporting in the new financial year.
If you forget to renew, exports made after 1 April will require IGST payment until a new LUT is filed.
6. Documents Required for LUT Filing
GST Registration Certificate
PAN of business
IEC (Import Export Code)
Bank details
Previous LUT reference (for renewal)
7. Step-by-Step Process to File LUT on GST Portal
Visit www.gst.gov.in and log in with your credentials.
Select the financial year for which LUT is being filed.
Upload the declaration and supporting documents, if any.
After successful submission, an Acknowledgement Reference Number (ARN) is generated.
Download and keep the LUT copy for your records.
8. Conditions for LUT Compliance
Export goods within 3 months from the invoice date.
Receive export payment in foreign currency within 1 year (or as permitted by RBI).
In case of non-compliance, you must pay IGST with interest on the delayed amount.
9. When to Use LUT vs IGST Refund Route
| Scenario | Recommended Option |
|---|---|
| Regular exporter or service provider | File LUT and export without paying IGST |
| One-time exporter or uncertain compliance | Pay IGST and claim refund |
| SEZ supplier | File LUT before supply |
| New exporter with no prior record | Start with LUT; no restriction unless prosecuted |
10. Common Mistakes to Avoid
Forgetting to renew LUT annually before 1 April.
Failing to export within 3 months from invoice date.
Not keeping LUT copy or ARN for audit.
Mis-declaration or wrong financial year selection.
Not updating digital signature (DSC) before submission.
11. How eAuditor Office Helps Exporters
We assist businesses and exporters with:
LUT filing and renewal under GST
Export documentation and audit support
IGST refund and reconciliation services
SEZ compliance and advisory
Book Free Export Compliance Consultation: https://eauditoroffice.com/contact
🌐 www.eauditoroffice.com ✉️ info@eauditoroffice.com
