GST – LUT Filing for Exporters: Step-by-Step Guide

By Revenue Dynamics Tax Advisory

Published: 20 November 2025

Category: GST/Export Compliance

1. Executive Summary

Exporters in India can supply goods or services without paying IGST upfront, simply by filing a Letter of Undertaking (LUT). This reduces cash blockage, avoids refunds, speeds up exports, and simplifies compliance.

In this guide, we break down LUT eligibility, documents needed, step-by-step filing, common mistakes, and renewal rules — with clarity and simplicity.

2. What is an LUT (Letter of Undertaking)?

An LUT is a declaration filed on the GST Portal that allows exporters to:

✔ Export goods/services without paying IGST

✔ Supply to SEZ without paying tax

This is done under: Rule 96A of CGST Rules + Section 16 of IGST Act (Zero-rated supply).

3. Who Can File LUT? (Eligibility)

The following can furnish LUT:

✔ Exporters of goods

✔ Exporters of services

✔ SEZ suppliers

✔ Exporters making zero-rated supplies

Conditions:

• No prosecution for tax evasion above ₹250 lakh under GST/CE/Service Tax in the last year.

• The entity must have a valid GSTIN.

If the exporter does not qualify, they must furnish a Bond with Bank Guarantee.

4. Benefits of Filing LUT

LUT filing gives exporters several advantages:

1️⃣ No Advance IGST Payment

No tax is paid at the time of export.

2️⃣ Cash Flow Savings

Avoids cash blockage or high working capital usage.

3️⃣ Faster Export Clearance

GST documentation becomes smooth.

4️⃣ No Waiting for Refunds

You export without paying tax → no refund cycles.

5️⃣ Reduced Compliance Burden

5. Documents Required for LUT Filing

Minimal documents are needed:

Mandatory Documents

• GSTIN

• PAN of business

• IEC (Import Export Code)

• Address proof of business

• Digital Signature (DSC) for companies/LLP

• Authorised signatory Aadhaar/PAN

Optional/Supportive

• Previous LUT (if renewal)

• Authorisation letter/board resolution

6. LUT Filing – Step-by-Step Process on GST Portal

Step 1:

Log in to the GST Portal → Services → User Services → Furnish LUT

Step 2:

Select the Financial Year (VERY IMPORTANT)

Step 3:

Upload supporting documents (if required)

Step 4:

Check all pre-filled details (Name, Address, PAN, GSTIN)

Step 5:

Tick the three self-declarations (mandatory compliance requirement)

Step 6:

Enter the details of the authorised signatory

Step 7:

Submit using:✔ DSC (Companies/LLP) or✔ EVC (OTP-based, for Proprietorship/Partnership)

Step 8:

Download the LUT Acknowledgement

Note: This acknowledgement MUST be kept for audit purposes.

7. Common Mistakes Exporters Make (Avoid These!)

Most LUT rejections or issues happen due to:

❌ Selecting the wrong financial year

❌ Forgetting renewal

❌ Uploading unnecessary documents

❌ Not using DSC when required

❌ Not tracking export timelines under Rule 96A

❌ Confusing LUT with Bond

❌ Not linking LUT with the IEC team or CHA

RDTA can manage this end-to-end to avoid mistakes.

8. LUT Validity & Renewal Rules

✔ Validity:

Valid for ONE financial year only.

✔ Renewal:

Must be renewed every year before exports begin.

✔ If LUT is not renewed:

Exporter must:

• Pay IGST on exports OR

• Furnish a Bond with Bank Guarantee

9. LUT vs Bond (Clear Comparison)

Feature	LUT	Bond
Tax Payment	No IGST	IGST is refundable after export
Who Can Apply?	Exporters with a clean record	New/high-risk exporters
Bank Guarantee	Not required	Required
Compliance Burden	Very low	High
Cost	Zero	Bank guarantee cost

10. RDTA Case Example (Clean & Professional)

A Chennai-based software export company approached RDTA. They were paying IGST upfront and waiting 45–60 days for refunds, affecting cash flow.

RDTA helped them file their LUT within 15 minutes.

Result:

• No more IGST payment

• Faster export documentation

• Cash flow improved

• Reduced refund dependency

This is the power of using LUT correctly.

11. Frequently Asked Questions (FAQ)

Q1. Is LUT mandatory for exporters?

Yes — if exporting without payment of IGST.

Q2. What happens if the LUT expires?

You must pay IGST on exports or furnish a bond.

Q3. How long does LUT approval take?

Instant — acknowledgement is generated immediately.

Q4. Can LUT be filed mid-year?

Yes, but it covers only the selected financial year.

Q5. Is DSC mandatory?

Mandatory for companies & LLPs.

Q6. Can LUT be filed for multiple business places?

Yes, one LUT covers all registered places under the same GSTIN.

12. Conclusion

LUT Filing is one of the most important compliance tasks for exporters. It saves tax, improves cash flow, and avoids refund delays. Every exporter must file an LUT at the start of each financial year.

RDTA ensures hassle-free filing with complete compliance support.

13. CTA – Revenue Dynamics Tax Advisory

Need help with LUT Filing?

We support: ✔ Export GST Compliance✔ LUT Filing & Renewal✔ Refund Processing✔ CHA Documentation✔ GST Advisory

📞 +91 97106 75224🌐 www.rdtaxadvisory.in📧 info@rdtaxadvisory.in