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GST LUT (Letter of Undertaking) Filing: A Comprehensive Guide

GST LUT (Letter of Undertaking) filing enables eligible exporters to supply goods or services without paying Integrated Goods and Services Tax (IGST) when exporting. The exporter files a LUT under GST to declare their fulfillment of necessary conditions and commitment to meeting export obligations.

Exporters should consult our GST professionals to understand the requirements and procedures for filing GST LUT. They can help ensure accurate preparation and submission of the LUT, maintain compliance, and avoid penalties or complications with export transactions.

Here is an overview of the GST LUT filing process:

Eligibility for LUT Filing

  • Exporters who have received at least one export invoice or made exports in the previous financial year can file LUT.
  • Only registered taxpayers with a valid GSTIN can apply for LUT.

LUT Filing Procedure

The GST LUT filing procedure has a series of steps that need to be followed. These steps are as follows:

Step 1 – Preparation of LUT

Prepare the LUT in the prescribed format as specified by the GST authorities. It typically includes details such as the exporter’s name, address, GSTIN, the period for which the LUT is applicable, and a declaration of compliance with the conditions.

Step 2 – Online Application

Log in to the GST portal and then furnish a Letter of Undertaking (LUT).

Step 3 – Submitting the Application

Fill in the necessary details in the LUT application form and upload the signed LUT document.

Step 4 – Verification and Approval

Once the application is submitted, the GST officer will review the application and verify the provided information. If everything is in order, they will approve the LUT.

Step 5 – Acknowledgement

After approval, an acknowledgment will be issued, indicating the acceptance of the LUT.

Validity and Renewal

Exporters view the Letter of Undertaking (LUT) as a crucial document that allows them to export goods without paying Integrated Goods and Services Tax (IGST). It is important to note that the LUT has a specific validity period tied to the financial year and needs annual renewal. Exporters should submit a new application before the current LUT expires to renew it. This proactive action ensures uninterrupted tax exemption benefits for exporters engaged in international trade transactions.

Also Read: Everything You Need To Know About GST Return Filing

Compliance and Record-keeping

Exporters must prioritize complying with the conditions stated in the Letter of Undertaking (LUT). This involves fulfilling obligations such as promptly submitting export details, ensuring export proceeds are realized, and adhering to applicable export regulations. Exporters must maintain accurate records and documentation regarding their export transactions and LUT filings. These records serve as valuable resources for future reference and make audits smoother, promoting transparency and accountability in international trade operations.

Consequences of Non-Compliance

  • Non-compliance with the LUT conditions may lead to the withdrawal of the LUT facility and require the exporter to pay IGST on exports.
  • Penalties and legal consequences may also be applicable in case of non-compliance.


GST LUT is an essential document required for any business involved in the export of goods without paying the IGST. While the process of applying for and verifying the GST LUT can be complex, the benefits and advantages that come with its approval more than make up for the efforts involved. Overall, obtaining a GST LUT can significantly impact an export-oriented business. It streamlines export operations, improves financial flexibility, and enhances the company’s standing in the global marketplace. As international trade continues to play a vital role in the growth of businesses, ensuring proper compliance with GST regulations through a valid GST LUT becomes a strategic move that unlocks numerous opportunities for sustainable success. The law regarding LUT changes frequently. Therefore, we suggest you contact FileMyReturn for all your GST-related queries.

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