If you are an exporter or planning to export goods/services from India, one term you must have heard is LUT. But what exactly is LUT?
Why is it required? How do you file it? And what mistakes should you avoid?

This blog covers everything you need from LUT full form to step-by-step LUT filing, FAQs, benefits, renewal, errors, and a simple explanation that even a first-time exporter can understand.

Let’s begin.

LUT Full Form – Meaning in Different Contexts

Before jumping into GST(Registration), let’s clear confusion around LUT full form in general:

In this blog, we focus on LUT full form in GST, used for exporters.

What Is LUT in GST?

LUT stands for Letter of Undertaking.
It is a declaration filed by exporters saying:

“We will export goods/services without paying IGST and will follow all GST rules.”

Think of LUT as a permission slip from the government allowing you to export without paying tax upfront.

Without an LUT, an exporter must pay IGST first, then apply for refund later which blocks cash flow.
With LUT, your exports become tax-free from the beginning.

Why LUT Is Required for Exporters?

Here’s the simple logic:

So, LUT is required to ensure that exporters do not suffer financially and can ship goods/services smoothly.

It benefits:

✔ MSME exporters
✔ Service exporters
✔ Freelancers exporting services
✔ E-commerce exporters
✔ Merchant & manufacturer exporters

How to Apply for LUT in GST Portal (Step-by-Step Guide)

Filing LUT is 100% online and takes less than 10 minutes.

Step 1: Visit GST Portal

Go to: www.gst.gov.in
Login with your GST ID and password.

Step 2: Navigate to LUT Section

Dashboard → Services → User Services → Furnish LUT

Step 3: Select the Financial Year

Choose the year for which LUT is being filed (e.g., 2024–25).

Step 4: Fill the Declaration Form

Tick the checkboxes confirming:

• No GST dues
• You will comply with GST rules
• You will complete export within the permitted time

Step 5: Upload Supporting Documents

(Usually NOT required unless asked)

Step 6: Submit with DSC or EVC

• Companies need DSC(Apply)
• Proprietors & partnerships can use OTP (EVC)

Step 7: Download the Acknowledgment

Your LUT certificate will be generated instantly.

That's it! LUT filing is complete.

Documents Required for LUT Filing

Generally very minimal:

1. PAN & GST Number
2. IEC (if applicable)
3. Previous year LUT copy (for renewal)
4. Authorized signatory PAN & Aadhar
5. Digital Signature (for companies)

No heavy documentation is required unless any inconsistency arises.

Who Is Eligible for LUT Under GST?

You can file LUT if:

✔ You export goods
✔ You export services
✔ You supply SEZ units
✔ You do zero-rated supply
✔ You have no significant GST defaults

Also eligible:

• MSMEs
• Freelancers exporting services
• Consultants with foreign clients
• IT service providers
• Amazon/Flipkart global sellers

Only condition:
No prosecution for tax evasion above ₹250 lakh.

LUT vs Bond – Difference Explained

LUT is used by the majority of exporters because it’s simple, online, completely free, and doesn’t require any bank guarantee. It is ideal for MSMEs, freelancers, and service exporters who want to export without paying IGST upfront. On the other hand, a Bond is typically used by high-risk or newly registered exporters, requires a mandatory bank guarantee, involves a more complicated offline process, and comes with additional bank guarantee charges. Bonds are mainly suitable for cases where there are past GST issues or compliance risks.

In short:

LUT is the smart, simple, cost-free option.
Bond is the complicated backup option.

Benefits of Filing LUT for Exporters

1. Zero Tax Payment

No IGST on export invoices.

2. No Refund Hassle

Avoid refund delays (which sometimes take months).

3. Faster Working Capital Cycle

No money blocked in taxes.

4. Smooth Customs Processing

Less friction during export documentation.

5. Financial Relief for MSMEs

Small businesses can focus on scaling, not paperwork.

LUT Validity – Kab Tak Valid Rehta Hai?

LUT is valid only for one financial year.

Example:
If you file LUT for FY 2024–25, it is valid from 1 April 2024 to 31 March 2025.

After that, you MUST renew.

LUT Renewal Process (Every Year)

Renewing an LUT is super easy.

Timeline: File it in April every year.

Renewal Steps

Same process as new LUT:

1. Login to GST portal
2. Go to “Furnish LUT”
3. Select new financial year
4. Tick declarations
5. Submit via DSC/EVC
6. Download acknowledgment

Pro-tip:
StartupFlora recommends filing LUT before 30 April to avoid delays in zero-rated supplies.

Common Errors While Filing LUT & How to Fix Them

Error 1: Wrong financial year selected

✔ Fix: Refile LUT for the correct year.

Error 2: DSC mismatch

✔ Fix: Update DSC from “Register/Update DSC” option.

Error 3: “Not eligible for LUT” message

✔ Fix:

• Clear pending GST returns
• Pay dues
• Retry after 2–3 hours

Error 4: Portal not loading

✔ Fix: Try in incognito mode or use laptop instead of mobile.

LUT Meaning in Business Terms

In business language:

LUT means a promise made by an exporter to the government that exports will be completed properly without needing to pay IGST.

LUT Meaning for Export MSMEs

For MSMEs, LUT is a lifeline because it ensures:

• No blockage of funds
• No lengthy refunds
• Smooth export operations
• More cash available for business growth

LUT Kaise File Kare Without CA?

You do NOT need a CA.

Just follow these steps:

1. Go to GST portal
2. Login → User Services → Furnish LUT
3. Select year
4. Tick declarations
5. Submit via OTP
6. Download LUT copy

Total time: 5–7 minutes
Total cost: ₹0

FAQs on LUT Full Form

1. What is full form of LUT?

Letter of Undertaking.

2. What is LUT number full form?

LUT number = Letter of Undertaking reference number issued by the GST portal.

3. What is LUT full form in medical?

Lower Urinary Tract.

4. What is LUT full form in GST?

Letter of Undertaking used by exporters to export without paying IGST.

5. What is LUT in export process?

A declaration that allows zero-rated supply without IGST payment.

6. What is “non-LUT”?

Exporter pays IGST first → then claims refund.
With LUT = no IGST.

7. Is LUT compulsory?

Not compulsory, but highly recommended.
Without LUT you must pay IGST.

8. Does LUT require bank guarantee?

No. Only Bonds need bank guarantee.

9. Can freelancers file LUT?

Yes, service exporters and freelancers can file LUT easily.