GST LUT Filing Process Explained: Online Registration, Rules & Benefits As an exporter based in India, you must have heard of a Letter of Undertaking (LUT) under GST. It's not only a tax term, but it could also be your ticket to export goods or services without having to pay Integrated GST (IGST) up front. LUT Filing can provide an opportunity for many businesses, especially exporters, to improve their cash flow. In this guide, we will explain everything you need to know about GST LUT Filing Online, including what it is, its significance, who can apply, and the process to complete it without any headaches.
What is GST LUT? A Letter of Undertaking (LUT) is a declaration submitted by exporters to the GST department that they will follow all export regulations and that they will not default on tax payments. In return, the government allows exporters to export goods or services without having to pay IGST at the time of export. If you don't have an LUT, you would normally have to first pay the IGST on your exports, which you could later claim back as a refund. This process can lock your working capital up for many months. But with an LUT, you can just ignore that.
Why is LUT Filing Important Think about the GST LUT like a good sound business decision. Here’s why it matters: ● No out-of-pocket payment of IGST – Lazy capital, rather than locked away for taxes ● Export to be processed quicker – No waiting for IGST refunds ● Compliant and shows you are transparent and compliant with respect to GST export provisions A better cash flow – For struggling small and medium exporters, you can use your money for growing the business and not hand it to the government.
Who Can File LUT? Keep in mind that not every business is required to file or is eligible to apply for LUT. Here’s the eligibility checklist:
Exporters of goods or services – This could be physical products exported or services being provided to other countries. Deemed exports – Supplies to SEZ units or developers. No prosecution – Your business or its partners or directors should not have been prosecuted for tax evasion in the amounts of ₹2.5 crore or more under any law.
Documents You Will Need to File GST LUT Before starting the application, it is best if you have the following documents in order: ● ● ● ● ● ● ●
GST registration certificate IEC (Import Export Code) PAN card of the business/ company Aadhaar card of the duly authorised signatory on behalf of the company Cancelled cheque or bank account information Last year's LUT, if you are filing again An authorisation letter permitting the applicant to file the GST LUT.
How to File LUT in GST Portal - Step-by-Step Process So here is the step-by-step guide for filing LUT online without any hassle1. Log in to the GST Portal Visit the GST portal (www.gst.gov.in) and log in with your username and password. 2. Navigate to LUT Application Then, Click on Services → User Services → Furnish Letter of Undertaking (LUT). Select the available financial year for which you are filing LUT. 3. Fill in the Details Verify GSTIN, legal name, and trade name. After that, fill in witness details (Name and Address). 4. Upload Required Documents Upload the relevant documents. One document may be a previous LUT or an authorisation letter. 5. Declaration and Submission Click the declaration box, confirming to produce or provide the export, tax, and other records pointed out under the GST export provisions. Sign the file using your Digital Signature Certificate (DSC) or EVC (Electronic Verification Code).
6. Acknowledgment After submission, you will receive an acknowledgment mentioning the Application Reference Number (ARN), which you save for reference.
Common Pitfalls with GST LUT Filing Online 1. Late submission – Delays can lead to paying IGST unnecessarily. 2. Incorrect details – Even small errors in GSTIN, addresses, or witnesses lead to rejection. 3. Missing renewal – Many forget they have to renew their LUT every year. 4. No record keeping – It is important to keep the acknowledgment receipt and a copy of the LUT for audit review.
Benefits of Online Filing of LUT While many of the advantages are clearly outweighed when using the GST portal compared to the previous paper-based process: ● ● ● ●
No physical visits to the GST office. You will get your approval back faster – usually within 24 hours. Easily reconcilable digital records if you are ever subject to audit. Every year, you can comfortably renew your LUT on time, without hassle.
Final thoughts Filing a GST LUT is not only a compliance issue – it is all about strategy as an exporter. Especially thinking about being properly lawful, not locking up working capital in taxes, and doing the export business faster. Filing online is free and quite quick; there is no excuse not to complete your LUT. Whether you have been exporting for years or think this might be the first year for your company, do not forget to file (and renew) your LUT on time every year.
