An exporter we spoke with had a shipment ready to go. But her IGST refund from the previous quarter was still stuck. Her working capital was tied up, and she couldn’t understand why.

The answer was simple. She hadn’t filed her LUT in GST. Every export she made, she paid IGST upfront and waited months for a refund. One document could have saved her that wait entirely.

This guide covers what is LUT, why it matters, and exactly how to file it.

What is a Letter of Undertaking (LUT) Under GST?

A Letter of Undertaking, or LUT, is a declaration exporters file with the GST department. It lets you export goods or services without paying IGST upfront.

The LUT full form in GST stands for Letter of Undertaking. In simple terms, it’s your promise to the government that you’ll follow export rules and bring in payment in foreign currency within the set timeline.

Why is LUT Important for Exporters?

Filing LUT changes how your export cash flow works. From our experience helping exporters, this single filing often makes the biggest difference to their working capital.

• No IGST payment needed at the time of export
• Funds don’t get locked up waiting for a refund
• Zero-rated supplies become simpler to manage
• SEZ suppliers also benefit from the same exemption
• One filing covers the entire financial year

LUT vs Paying IGST and Claiming Refund

Without an LUT, you have two options. Pay IGST first and claim it back later. Or provide an export bond instead.

Both paths cost you time. IGST refunds can take weeks or months. Export bonds need bank guarantees and extra paperwork. LUT skips both problems. You export first, without paying tax, and stay compliant the whole way through.

Who Needs to File LUT?

• Exporters of goods outside India
• Exporters of services to foreign clients
• Businesses supplying to Special Economic Zones (SEZs)

If you’re making zero-rated supplies and don’t want to pay IGST upfront, LUT applies to you.

Eligibility Criteria for Filing LUT

• You must have a valid GST registration
• Your supplies must qualify as zero-rated under GST
• You must not have any pending refund claims left unresolved
• You must not have faced prosecution for tax evasion above Rs. 2.5 crore

Who is Not Eligible to File LUT?

• Businesses without GST registration
• Entities facing legal action for tax evasion beyond the prescribed limit

These businesses need to use the export bond route instead.

When Should LUT Be Filed?

File your LUT before you make any export or SEZ supply. It’s meant to be in place before the transaction, not after.

Many businesses ask about the LUT filing due date. Practically speaking, the safest approach is filing it right at the start of the financial year, before your first export invoice goes out.

Validity Period of LUT

An LUT stays valid for one financial year. Once that year ends, it expires automatically.

This means LUT renewal isn’t optional. You need to file a fresh LUT every year to keep exporting without paying IGST.

Documents Required for LUT Filing

• GST registration certificate
• IEC code copy, for goods exporters
• PAN and ID proof of the authorised signatory
• Details of two independent witnesses
• Self-declaration regarding compliance history
• Export invoice, where applicable

Step-by-Step Process to File LUT on GST Portal

Step 1: Log in to the GST Portal

Open the GST portal. Enter your GSTIN and password. Complete OTP verification if asked.

Step 2: Navigate to Furnish LUT Section

Go to Services, then User Services. Click on Furnish Letter of Undertaking.

Step 3: Select the Financial

Year Choose the year you’re filing for. If you had a manual LUT before, upload that copy too.

Step 4: Fill in Form GST RFD-11

This is the official form GST RFD-11. Enter your export commitment details here.

Step 5: Add Witness Details & Self-Declaration

List the names, addresses, and jobs of two witnesses. Tick the self-declaration boxes confirming your commitments.

Step 6: Preview & Save the application

Check every field carefully. Once submitted, you can’t edit it. Save first, then preview.

Step 7: Sign & Submit (DSC or EVC)

Companies and LLPs use a Digital Signature Certificate. Proprietors use an Electronic Verification Code sent through an OTP.

Step 8: Download Acknowledgement (ARN)

After you submit, you will get your application reference number.This confirms your LUT is filed. You can also complete your LUT certificate download from the same portal for your records.

How to Renew LUT Every Financial Year

Renewal follows the exact same process as a fresh filing. Log in, select the new financial year, fill the form again, and submit.

There’s no separate “renewal” button. You’re simply filing a new LUT each year before your old one expires.

What Happens if LUT is Not Filed?

• You’ll need to pay IGST on every export, upfront
• Your working capital stays tied up until refunds are processed
• Refund processing can take weeks, sometimes longer
• You may need to arrange an export bond instead, which adds paperwork

Common Mistakes in LUT Filing

• Waiting until after the first export to file LUT
• Entering incorrect witness details
• Forgetting that LUT needs to be renewed every year
• Mismatching GSTIN details between LUT and export invoices
• Not keeping the acknowledgement copy for future reference

LUT vs Export Bond: Key Differences

Basis	LUT	Export Bond
Eligibility	Clean compliance history	Required if LUT conditions aren’t met
Bank guarantee	Not required	Usually required
Paperwork	Simple, one-time yearly filing	More extensive documentation
Best suited for	Most regular exporters	Exporters with compliance issues

Why Choose FEMA Expert for LUT & EXIM Compliance

At FEMA Expert, we help exporters file their LUT correctly and on time. We prepare your documents, guide you through Form GST RFD-11, and make sure your filing goes through without delays.

Since LUT filing often connects to broader export compliance, our team also supports related EXIM advisory needs, including IEC registration and foreign remittance reporting under FEMA.

Need help filing or renewing your LUT? Reach out to FEMA Expert today.

Conclusion

Filing your LUT isn’t complicated, but skipping it can quietly cost you time and cash flow. One filing each year keeps your exports moving without the wait for IGST refunds.

If you need help filing or renewing your LUT, FEMA Expert’s team can guide you through it end to end.

(FAQs)

1. What is LUT in GST? 

LUT means Letter of Undertaking. It’s a declaration. Exporters use it to export goods or services. They do this without paying IGST upfront.

2. What does LUT mean in export transactions?

The LUT meaning in export context is a commitment that lets exporters make zero-rated supplies while agreeing to follow GST export rules.

3. How do I apply for LUT in GST?

Log in to the GST portal. Then, go to User Services and select Furnish Letter of Undertaking. Fill out Form GST RFD-11 and submit it using DSC or EVC.

4. What is Form GST RFD-11? 

It’s the official form to file LUT on the GST portal. It captures your export commitment and declaration details.

5. How long is an LUT valid? 

An LUT is valid for one financial year and must be renewed before the next year begins.

6. Can I download my LUT certificate after filing? 

Yes, once your LUT is approved, you can download the acknowledgement and certificate directly from the GST portal.

7. What happens if I don’t file LUT before exporting? 

You’ll need to pay IGST upfront and claim a refund later, which can delay your working capital.

8. How can FEMA Expert help with LUT filing? 

We manage the complete filing process, from document preparation to submission, and support related EXIM and FEMA compliance too.