LUT in GST stands for “Letter of Undertaking”, an official declaration filed in Form GST RFD-11 that allows eligible exporters and SEZ suppliers to make zero-rated supplies under Section 16 of the Integrated Goods and Services Tax Act, 2017, without paying Integrated GST (IGST) upfront. It is filed online through the GST portal under Rule 96A of the CGST Rules, 2017, and remains valid for one financial year (1 April to 31 March).
Without a valid LUT, exporters must either pay IGST on every export transaction and then claim a refund (a process that can lock up working capital for 2-6 months) or furnish an export bond backed by a bank guarantee, both significantly more cumbersome than a simple LUT filing. The LUT was introduced as a simpler alternative via Notification No. 37/2017-Central Tax dated 4 October 2017, replacing the earlier mandatory bond requirement for most exporters.
This guide covers the complete LUT framework for FY 2026-27, what the full form means, who can and cannot file, the step-by-step process on the GST portal, the documents required, validity and renewal rules, how to download the LUT certificate and check its status, common rejection reasons, and what to do if you’ve already exported without a valid LUT.
Key Takeaways
- LUT (Letter of Undertaking) in GST is filed in Form GST RFD-11 under Rule 96A of the CGST Rules, 2017, it allows zero-rated exports without IGST payment under Section 16 of the IGST Act, 2017.
- Eligibility: All GST-registered exporters and SEZ suppliers can file LUT, except those prosecuted for tax evasion exceeding ₹2.5 crore under the CGST/IGST Act or any prior law.
- Validity: One financial year only (1 April to 31 March). No automatic renewal, a fresh LUT must be filed at the start of each FY.
- Filing fee: Zero, LUT filing is free of cost. Only working capital is “saved” through avoided IGST payment.
- Approval timeline: Auto-acknowledged immediately upon successful submission with ARN generation, no manual departmental approval required since 2018.
- What happens without LUT: Exports become liable for IGST at applicable rates. The exporter can claim a refund later, but filing in advance avoids this 2-6 month working capital lock-up.
- Witnesses required: Two independent witnesses (not related to the business; not employees) must be named in the LUT with their addresses and occupations.
What is LUT in GST, and why is it Important for Exporters?
A Letter of Undertaking (LUT) is an essential document that exporters file to supply goods and services without paying Integrated Goods and Services Tax (IGST). It acts as a self-declaration, assuring the government that the taxpayer will adhere to GST compliance regulations while conducting export transactions.
Under the GST filing in India regulations, businesses that do not submit an LUT must first pay IGST on their exports and later claim GST refunds. This process can lead to significant cash flow issues, causing financial strain for exporters. However, by opting for a Letter of Undertaking, businesses can bypass the burden of upfront tax payments, ensuring smoother transactions and financial efficiency.
Why is LUT Important for Exporters?
LUT filing for GST is important for exporters in India because of the following reasons:
- GST Exemptions on Exports: The biggest advantage of filing an LUT in GST is that it allows businesses to export goods and services without paying IGST. This exemption helps exporters remain competitive in global markets without unnecessary tax burdens.
- Improved Cash Flow Management: Without an LUT, businesses must pay IGST on exports and later apply for GST refunds. This process can take time, affecting liquidity. Filing an LUT eliminates this hassle and ensures better cash flow management.
- Faster Processing and Compliance: Submitting an LUT under GST filing in India ensures a faster and more efficient export process. It reduces the need for frequent refund applications and simplifies GST compliance for exporters.
- Avoidance of Additional Documentation and Delays: Exporters who fail to file an LUT in GST must go through lengthy refund procedures, requiring additional paperwork. Filing a Letter of Undertaking streamlines the process and helps businesses avoid unnecessary delays.
- Cost Savings for Export Businesses: By leveraging GST exemptions, exporters can significantly reduce the financial burdens associated with tax payments, making their operations more cost-effective.
Legal Framework for LUT Under GST
Under Section 16 of the Integrated Goods and Services Tax Act, 2017, exports and supplies made to Special Economic Zones (SEZs) qualify as “zero-rated supplies.” This means eligible businesses can export goods or services without bearing the final burden of GST.
Rule 96A of the Central Goods and Services Tax Rules, 2017 allows eligible exporters to furnish a Letter of Undertaking in Form GST RFD-11 for making zero-rated supplies without paying Integrated GST (IGST) upfront. The government expanded this facility through Notification No. 37/2017-Central Tax, allowing all eligible exporters to submit an LUT instead of a bond, subject to prescribed conditions.
This framework simplifies export compliance, improves working capital flow, and reduces the need to claim IGST refunds after export transactions.
Who is Eligible to Apply for LUT in GST?
The following businesses can file an LUT for GST exemptions on exports:
1. Exporters of Goods and Services: Businesses engaged in international trade can file an LUT to avoid paying IGST on exports.
2. Suppliers to Special Economic Zones (SEZs): Companies supplying goods or services to SEZs can apply for an LUT to claim GST exemptions.
3. Deemed Exporters: Businesses engaged in deemed exports under GST laws can also avail of LUT benefits.
Who is NOT Eligible to File LUT?
A registered person who has been prosecuted for any offence under the CGST Act, IGST Act, or any existing law where the tax evaded exceeds ₹2.5 crore is not eligible to furnish an LUT. Such exporters must instead furnish an export bond backed by a bank guarantee.
All other GST-registered exporters and SEZ suppliers are eligible; there is no minimum turnover requirement.
Documents Required for LUT Filing in GST
The LUT filing process on the GST portal is largely auto-populated from your existing GST registration records. The actual documents and details required are:
Mandatory Information for LUT Submission
| Item | Details Required | Source |
|---|---|---|
| GSTIN | Active GST registration number | Auto-populated by the portal |
| Legal name and trade name | As per the GST registration | Auto-populated |
| Authorised signatory | PAN and designation of the person filing | Must match GST registration |
| Two independent witnesses | Name, full address, and occupation of each | Manually entered |
| Digital Signature Certificate (DSC) or EVC | For form submission and authentication | Must be active and registered on the GST portal |
Optional / Case-Specific Supporting Documents
| Item | When Required |
|---|---|
| Import Export Code (IEC) | If exporting goods (not strictly required for LUT, but needed for actual export) |
| Previous LUT acknowledgement | If renewing — for record-keeping (not needed for submission) |
| Authorisation letter | If filing through a tax practitioner or representative |
Key clarification: Items like PAN card, Aadhaar of authorised signatory, business letterhead, LUT format, and bank account details are not separately uploaded during LUT filing; these are either already linked to your GST registration or not required by the GST portal at all. Old articles and templates often list these as documents required, but the actual portal flow doesn’t ask for them.
Time Limit for Filing LUT in GST: When to File?
There is No Statutory “Due Date” — But Practical Deadlines Matter
Unlike most GST returns, the law does not prescribe a specific calendar due date for LUT filing. Rule 96A only requires that an LUT be in place before the export transaction is undertaken.
However, in practice, three timing rules govern LUT filing:
- For the start of a financial year: File the LUT for FY 2026-27 on or before 31 March 2026 (or by 1 April 2026 at the latest), so it is active for the very first export of the new financial year.
- For new GST registrants: File the LUT immediately after GST registration if you intend to export. Exporting before filing makes those transactions IGST-liable.
- For LUT renewal: The previous year’s LUT expires on 31 March — renewal for the next FY should be filed before that date to maintain seamless zero-rated supply eligibility.
What Happens If You Export Before Filing LUT?
Any export or zero-rated supply made between 1 April and the date of filing the LUT for that financial year becomes liable for IGST at applicable rates. You can subsequently file the LUT (it doesn’t apply retroactively), but the exports already made will follow the “export with IGST payment + claim refund” route — typically locking up working capital for 2-6 months.
Backdated LUT — Not Possible
Once an LUT is filed, it covers exports from the date of filing until 31 March of that financial year. There is no provision to backdate an LUT to cover exports already made before filing.
How to File LUT in GST Online? (Step-by-Step Guide)
To streamline GST filing in India, businesses can file an LUT online using the official GST portal. Follow these steps for hassle-free filing:
Step 1: Log in to the GST Portal
- Visit the official GST Portal.
- Enter your username, password, and captcha to log in.
Step 2: Navigate to the LUT Filing Section
Click on ‘Services’ > ‘User Services’ > ‘Furnish Letter of Undertaking (LUT)’.
Step 3: Fill in the LUT Form (GST RFD-11)
- Select the financial year for which you are filing the LUT.
- Enter business details, including authorized signatory details.
- Upload the required documents (listed below).
Don’t miss entering the details of two independent witnesses.
Step 4: Sign and Submit the LUT Form
- Review all details and confirm the declaration.
- Use Electronic Verification Code (EVC) or Digital Signature Certificate (DSC) to submit the form.
Step 5: Download the Acknowledgment Receipt
On submission, an ARN is generated, and the LUT is auto-acknowledged. No physical document or departmental approval is required.
LUT Number and ARN: Understanding Your LUT Acknowledgement
When you successfully submit Form GST RFD-11 on the GST portal, the system generates an Application Reference Number (ARN), which serves as your LUT acknowledgement and effectively functions as your “LUT number” for the financial year. The ARN is your proof of LUT filing and should be retained for all export-related correspondence and customs documentation.
What is the LUT Number in GST?
Technically, there is no separate “LUT certificate number” issued by the GST department. The ARN (Application Reference Number) generated upon successful filing IS the LUT reference number for that financial year. The format is typically a 15-character alphanumeric code.
How to Check LUT Status and ARN on the GST Portal
- Log in to the GST Portal at gst.gov.in
- Navigate to Services → User Services → View My Submitted LUTs
- Select the relevant financial year
- The portal displays all LUTs filed for that financial year along with the ARN, filing date, financial year covered, and acknowledgement status
- Click on the ARN to download the acknowledgement / LUT certificate as a PDF
LUT Acknowledgement Generation Timeline
Since 2018, LUT filing has been auto-acknowledged immediately upon successful submission. No manual approval is required. If the system shows “Pending” or “Under Processing” for more than 24 hours, contact the GST helpdesk or your tax practitioner. This typically indicates a portal technical issue, not a substantive rejection.
How to Download LUT Certificate from GST Portal
Many exporters need the LUT acknowledgement copy for customs clearance, bank documentation, or audit purposes. Here’s how to download it:
Step-by-Step Download Process
- Log in to the GST Portal at gst.gov.in using your GSTIN credentials
- Navigate to Services → User Services → View My Submitted LUTs
- Select the relevant financial year from the dropdown
- From the list of filed LUTs, click on the ARN for the LUT you want to download
- The LUT details page displays the full submission — click the “Download” button at the bottom
- The system generates a PDF of the LUT acknowledgement, including the ARN, business details, witness details, and the filing date
What the Downloaded LUT Certificate Contains
- GSTIN, legal name, and trade name of the applicant
- Financial year for which the LUT is valid
- Authorised signatory’s name and designation
- Details of two independent witnesses
- Declaration of undertaking under Rule 96A
- ARN (Application Reference Number)
- Date and time of submission
Save the PDF to your records, banks, customs authorities, and CHAs (Customs House Agents), as they frequently request a copy during export clearance.
LUT Validity and Renewal Under GST
A Letter of Undertaking (LUT) remains valid for one financial year, typically from 1 April to 31 March. It does not renew automatically, which means exporters must file a fresh Form GST RFD-11 at the beginning of every new financial year, ideally before making the first export transaction of the year.
If an LUT is filed during the middle of a financial year, its validity still ends on 31 March of that same year. Any export or zero-rated supply made before filing a valid LUT may become liable for Integrated GST (IGST), potentially affecting working capital and refund eligibility.
To avoid compliance issues and unnecessary tax payments, exporters should renew their LUT annually before undertaking exports or supplies to SEZ units.
How to Renew LUT in GST Portal for FY 2026-27
LUT renewal is identical in process to fresh filing; there is no separate “renewal form” on the GST portal. The renewal involves filing a fresh Form GST RFD-11 for the new financial year.
Step-by-Step LUT Renewal Process
- Log in to the GST portal at gst.gov.in
- Navigate to Services → User Services → Furnish Letter of Undertaking (LUT)
- Select the new financial year (FY 2026-27)
- The portal auto-populates business details from GST registration records
- Add two independent witnesses (can be the same witnesses as the previous year, or different ones)
- Review the declaration and undertakings (these are standard)
- Submit using Electronic Verification Code (EVC) or Digital Signature Certificate (DSC)
- ARN is auto-generated upon submission. Download the acknowledgement PDF for records
When to Renew
Renew before 1 April of the new financial year, ideally by 31 March. The new LUT covers exports from the date of filing through 31 March of the next year, never longer than one financial year.
Common Renewal Errors
- Filing for the wrong financial year (selecting the current FY instead of the next FY)
- Missing witness details, the portal mandatorily requires two witnesses with names, addresses, and occupations
- Authorised signatory mismatch with GST registration records
- DSC expiry: Verify your DSC is active before initiating renewal
Difference Between LUT and Bond in GST: Which One to Choose?
The key differences between the LUT for GST and the bond are explained in the table below:
| Feature | Letter of Undertaking (LUT) | Bond |
| Purpose | Export without IGST payment | Export with IGST payment |
| Eligibility | Available to all eligible exporters | Required for businesses ineligible for LUT |
| Financial Impact | No IGST payment required | IGST payment is required upfront |
| Documentation | Simple online filing | Requires a bank guarantee and additional paperwork |
Common Mistakes to Avoid When Filing LUT in GST
1. Incorrect Financial Year Selection
Filing the LUT for the wrong financial year (e.g., selecting the current FY when you intend to cover the next FY) is the most common portal error. Always verify the FY dropdown before submission.
2. Failure to Renew Annually
LUT validity ends on 31 March every year. Many exporters file in October-December for the current FY and forget to renew the following April, making April-July exports IGST-liable.
3. Using Expired LUT for Exports
Exports under an expired LUT are treated as exports without an LUT, and IGST becomes payable. The LUT cannot be backdated to cover earlier transactions.
4. Incorrect Business Details Mismatch
Authorized signatory PAN, name, or designation that doesn’t match GST registration records causes filing failure or subsequent verification issues during refund/audit.
5. Inadequate Witness Details
The portal mandatorily requires two independent witnesses with full names, addresses, and occupations. Common errors: listing employees (who are not “independent”), listing related parties, or providing incomplete addresses.
6. Filing Without an Active DSC
A Digital Signature Certificate (DSC) of the authorised signatory must be active and registered on the GST portal before initiating LUT filing. DSC expiry or non-mapping blocks submission.
7. Missing Export Completion Within Prescribed Timelines
LUT holders must complete the actual export within 3 months from the invoice date for goods (and within 1 year for services), as per Rule 96A. Failing this attracts IGST + 18% interest under Section 50, even if the LUT was validly in force.
8. Not Downloading and Saving the Acknowledgement
The ARN-bearing LUT acknowledgement is your proof of compliance. Banks, customs, and CHAs often request a copy. Download the PDF immediately after filing.
Conclusion
Filing a Letter of Undertaking (LUT) under GST is a strategic decision for exporters, enabling them to avoid unnecessary IGST payments, benefit from GST exemptions, and maintain a healthy cash flow. Ensuring proper GST compliance allows businesses to expand their international trade operations without financial roadblocks, making the process more efficient and cost-effective.
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