What is LUT Registration?
Under GST law, exporters are given two options for exporting goods or services:
- Export with payment of IGST and claim refund later
- Export without payment of IGST by filing a Letter of Undertaking (LUT)
LUT (Letter of Undertaking) allows exporters to export goods or services without paying Integrated GST (IGST) at the time of export.
It is filed in Form GST RFD-11 under Rule 96A of the CGST Rules.
Why LUT Registration is Important?
Exports are treated as Zero Rated Supplies under GST.
Filing LUT helps exporters:
- Avoid payment of IGST at the time of export
- Avoid refund procedure delays
- Prevent blockage of working capital
- Simplify compliance
What is Letter of Undertaking (LUT)?
LUT is a declaration filed by a registered GST taxpayer stating:
- The exporter will comply with GST provisions
- The export proceeds will be realized within prescribed time
- Conditions under Rule 96A will be fulfilled
Once accepted, the exporter can export without paying IGST.
Who Can File LUT ?
Any registered GST taxpayer can file LUT if:
- They are exporting goods or services
- They have not been prosecuted for tax evasion exceeding ₹2.5 Crore under GST laws
If prosecuted beyond the prescribed limit, the exporter must furnish a Bond with bank guarantee instead of LUT.
Validity of LUT
- LUT is valid for one financial year.
- Must be filed every year before starting exports.
- Example: For FY 2026-27, LUT must be filed at beginning of April 2026.
Benefits of LUT Registration
✔ Export without payment of IGST
✔ No need to claim IGST refund
✔ Better cash flow management
✔ No tax blockage
✔ Entire process is online
✔ No government fee
LUT vs Bond (Difference)
| Particular | LUT | Bond |
|---|---|---|
| IGST Payment | Not required | Not required |
| Bank Guarantee | Not required | Required |
| Filing Mode | Online | Manual + Online |
| Eligibility | No prosecution above ₹2.5 Cr | For others |
LUT Registration Process
Step 1: Login to GST portal
Step 2: Navigate to Services → User Services → Furnish LUT
Step 3: Select Financial Year
Step 4: Upload required details
Step 5: Submit using DSC or EVC
Step 6: ARN generated instantly
Step 7: LUT acknowledgement available for download
Processing Time: Immediate (subject to portal functionality)
Documents Required for LUT
- GST Login ID and Password
- DSC (Digital Signature Certificate) for companies/LLPs
- IEC (Import Export Code)
- Previous LUT (if applicable)
- Details of two witnesses (Name & Address)
- Authorization letter (if applicable)
Documents Required for Bond (If LUT Not Eligible)
- Form GST RFD-11
- Bond on stamp paper
- Bank Guarantee
- Board Resolution (for companies)
- IEC Copy
- Cancelled cheque
- PAN
- Export invoices
Important Compliance Conditions
Exporter must:
- Export goods within 3 months from invoice date
- Receive export proceeds within FEMA prescribed time
- Comply with GST return filing
- Mention LUT number on export invoice
If conditions are violated, IGST becomes payable with interest.
Government Fees
There is no government fee for LUT filing.
Professional charges may apply if filing through a consultant.
Frequently Asked Questions
Is LUT mandatory for export?
No. Exporter can either pay IGST and claim refund or file LUT.
Is LUT required for service exporters?
Yes.
Can LUT be filed after export?
No. Must be filed before exporting without payment of IGST.
Do we need to file LUT every year?
Yes.
What if LUT expires?
Exporter must pay IGST until new LUT is filed.
For exporters looking to simplify GST compliance and maintain healthy cash flow, filing LUT at the beginning of each financial year is highly recommended.
