GST Letter of Undertaking (LUT)

What is GST LUT

A Letter of Undertaking (LUT) is a declaration filed by exporters on the GST portal that lets them supply goods or services for export, including to Special Economic Zones, without paying Integrated GST at the time of supply. Without an LUT in place, an exporter would instead have to pay IGST on the export and later claim it back as a refund — a process that ties up working capital until the refund comes through. Filing an LUT avoids that cash flow gap altogether.

Who needs it

• GST-registered exporters of goods who want to avoid upfront IGST payment
• GST-registered exporters of services, including to SEZ units and developers
• Any exporter wanting to preserve working capital rather than fund refund claims

Documents Required

• GST registration certificate
• IEC (Import Export Code)
• Authorised signatory details and digital signature
• Details of two witnesses, as required on the LUT form

Process

1. File Form GST RFD-11 on the GST portal at the start of the financial year.
2. Provide authorised signatory and witness details as required.
3. The LUT is typically auto-approved, with a reference number generated instantly on submission.
4. The LUT remains valid for the financial year in which it is filed — a fresh LUT must be filed each year.

FAQs

What happens if I don't file LUT?

You can still export by paying IGST at the time of supply and claiming it back as a refund afterward, but that ties up working capital until the refund is processed.

Is LUT available to everyone?

Generally yes. The main exception is exporters who have been prosecuted for tax evasion above a specified threshold — they must furnish a bond with a bank guarantee instead of an LUT.

Does LUT need renewal?

Yes. A fresh LUT must be filed at the start of every financial year to keep exporting without paying IGST upfront.