LUT Meaning in GST

A Letter of Undertaking (LUT) is a declaration filed by GST-registered exporters that allows them to export goods or services without paying Integrated GST (IGST) upfront. It helps businesses avoid the “pay tax first and claim refund later” process, thereby preserving working capital. LUT is mainly used for zero-rated supplies, including exports and supplies to SEZ units or developers, and is filed online through Form GST RFD-11 on the GST portal.

An LUT is valid for one financial year and must be renewed annually, usually at the beginning of April. It is available to GST-registered exporters who have not been prosecuted for tax evasion exceeding ₹2.5 crore. If an exporter is not eligible to file an LUT, they must furnish an Export Bond, which may require a bank guarantee and additional compliance.

What is the LUT Meaning in GST?

The LUT full form in GST is Letter of Undertaking.

Under GST law, LUT is a declaration filed by exporters stating that they will fulfill all export conditions under GST rules. Once approved, exporters can supply goods or services without paying Integrated GST (IGST).

In simple terms:

LUT in GST allows export without upfront tax payment.

Exports are treated as zero-rated supplies, meaning:

• You can pay IGST and claim refund later
• Or file LUT and export without paying IGST

Most exporters prefer LUT because it avoids refund delays.

What is LUT in GST and Why is It Important?

Understanding what is LUT in GST is crucial for:

• Exporters of goods
• Exporters of services
• Suppliers to SEZ units
• Suppliers to SEZ developers

Why LUT is Important:

• Prevents blockage of working capital
• Eliminates refund waiting period
• Simplifies GST compliance
• Helps MSMEs manage cash flow efficiently

For startups and MSMEs, LUT is a powerful compliance tool.

Who is Eligible to File LUT in GST?

A registered GST taxpayer can file LUT if:

• They are engaged in exports
• They have a valid GST registration
• They have not been prosecuted for tax evasion exceeding ₹2.5 crore

If not eligible, the exporter must submit a Bond with bank guarantee instead.

How to Apply for LUT in GST?

Many businesses search for how to apply for LUT in GST. The process is completely online and simple.

Follow these steps:

Step 1: Login to GST Portal

Visit the official GST portal and log in using your credentials.

Step 2: Navigate to LUT Filing

Go to:
Services - User Services - Furnish Letter of Undertaking (LUT)

Step 3: Select Financial Year

Choose the relevant financial year.

Step 4: Fill the Declaration

Accept the required conditions and enter details of witnesses.

Step 5: Sign and Submit

Submit using:

• Digital Signature Certificate (DSC)
• Electronic Verification Code (EVC)

Once submitted, LUT is approved immediately in most cases.

How to File LUT in GST?

If you are wondering how to file LUT in GST, here is a simplified breakdown:

• Filing is done through Form GST RFD-11
• No physical submission required
• No government fees applicable
• Filing must be done every financial year

After filing, you will receive an Acknowledgment Reference Number (ARN).

How to Download LUT from GST Portal

After filing, many taxpayers search for how to download LUT from GST portal.

Follow these steps:

1. Login to GST portal
2. Go to Services - User Services
3. Click on “View My Submitted LUTs”
4. Select relevant financial year
5. Download the acknowledgment

You can save it as proof of compliance.

Validity of LUT in GST

LUT is valid for:

✔ One financial year only

For example:
If you file LUT for FY 2026-27, it is valid until March 31, 2027.

It must be renewed annually before making exports in the new financial year.

Benefits of LUT in GST

1. No IGST Payment Required

Export without paying tax upfront.

2. Better Cash Flow

Working capital remains free.

3. No Refund Delays

Avoid long refund procedures.

4. Fully Online Process

Simple and paperless compliance.

Difference Between LUT and Bond in GST

LUT is more convenient and widely used.

Common Mistakes While Filing LUT

• Not renewing LUT every financial year
• Entering incorrect financial year
• Forgetting to download acknowledgment
• Filing after starting exports

Avoid these to stay compliant.

Frequently Asked Questions

What is LUT full form in GST?

LUT stands for Letter of Undertaking.

Is LUT mandatory for exports?

No, but without LUT you must pay IGST and claim refund later.

How to file LUT in GST?

Login to GST portal - Services - Furnish LUT - Submit via DSC or EVC.

How to download LUT from GST portal?

Login - View Submitted LUT - Download acknowledgment.

Is LUT filing free?

Yes, there is no government fee.

Conclusion

Understanding the LUT meaning in GST is essential for exporters in 2026. Filing LUT allows businesses to export goods or services without paying IGST, improving liquidity and simplifying tax compliance.

If you are engaged in exports, ensure you:

• Apply for LUT in GST on time
• File LUT every financial year
• Download and keep acknowledgment safely

Proper LUT compliance can save your business significant working capital and ensure smooth international trade operations.

Running an export business and confused about LUT filing or GST compliance? StartupFlora provides expert business consultancy services to help you handle GST registrations, LUT filing, MSME schemes, and complete compliance support. Let our experts simplify the process while you focus on growing your business.

Connect with StartupFlora today and stay compliant with confidence.

Disclaimer

This content is published for general informational purposes only and should not be considered as legal, tax, financial, or professional advice. StartupFlora acts as a consultative and informational platform and does not guarantee any outcome, approval, registration, or result. Government rules, regulations, and interpretations may change, and outcomes depend on multiple external factors. Readers are advised to verify information from official sources and seek professional advice where necessary.