When is GST LUT Filing Required?
- Year-end financial reporting
- Bank funding or loan requirements
- Internal control and management review
- Periodic verification for large inventory-based businesses
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OVERVIEW
Under the Goods and Services Tax (GST) law, exporters of goods or services can supply without payment of Integrated GST (IGST) by furnishing a Letter of Undertaking (LUT) in Form GST RFD-11. Filing LUT correctly and on time is crucial to avoid unnecessary tax payment and working capital blockage. Our firm provides end-to-end GST LUT filing services, ensuring accuracy, compliance, and timely submission on the GST portal.
WHAT IS LUT?
A Letter of Undertaking (LUT) is a declaration given by a registered taxpayer stating that exports will be made in accordance with GST laws without payment of IGST.
LUT is governed by Rule 96A of the CGST Rules, 2017 and is applicable for one financial year.
ELIGIBILITY FOR FILING LUT
• Exports goods or services
• Supplies goods/services to SEZ units or SEZ developers
• Start-ups engaged in international trade
• New GST registrants planning exports
• Has not been prosecuted for tax evasion exceeding ₹2.5 crore under GST or earlier laws
WHEN IS LUT REQUIRED?
VALIDITY OF LUT
• Must be renewed every year
• LUT automatically lapses after expiry
• Separate LUT is not required for each export invoice
CONSEQUENCES OF NOT FILING LUT
• Export must be done with payment of IGST
• Refund has to be claimed later
• Cash flow gets blocked
Common Mistakes to Avoid:
• Filing LUT after making exports
• Not renewing LUT every year
• Delay in export beyond prescribed time
• Incorrect authorized signatory selection
BENEFITS OF LUT FILING
✔ Improved cash flow
✔ Faster export operations
✔ Simple online filing process
WHY CHOOSE OUR GST LUT FILING SERVICES?
FREQUENTLY ASKED QUESTIONS (FAQs)
Yes, if you want to export goods or services without payment of IGST, filing LUT is mandatory.
Yes, LUT must be filed separately for each financial year.
Exports will have to be made with payment of IGST, and refund must be claimed later.
Legally, LUT should be filed before exports. Late filing may lead to compliance issues.
Taxpayers prosecuted for tax evasion exceeding ₹2.5 crore under GST or earlier laws are not eligible.
No, currently, no bank guarantee or bond is required for LUT filing.
- Goods: Within 3 months from invoice date
- Services: Within 1 year from invoice date
Yes, LUT is applicable for supplies made to SEZ units and developers without payment of IGST.
- Digital Signature Certificate (DSC): Mandatory for Companies and LLPs
- Electronic Verification Code (EVC): Allowed for Proprietorships and Partnerships
No, direct amendment is not allowed. Any correction requires professional evaluation and corrective action.
GST LUT should be filed:
- Before making export or SEZ supplies
- At the beginning of each financial year
- Immediately after GST registration for new exporters
Yes, GST LUT is filed online through the GST portal using Form GST RFD-11 with digital signature or EVC.
Yes, service exporters, consultants, IT professionals, and freelancers providing services outside India are eligible to file GST LUT.