GST LUT Filing (Letter of Undertaking) – Complete 2025 Guide
Exporters and service providers who supply goods or services outside India are required to file an LUT (Letter of Undertaking) every financial year. Filing an LUT allows you to export without paying IGST upfront, which helps maintain cash flow and speeds up export processes. Many businesses still struggle with LUT filing due to lack of clarity, incorrect submissions, or missing timelines. This guide explains everything you need to know about LUT filing in 2025, including eligibility, process, documents, and practical tips that help avoid rejection.
What Is LUT in GST
A Letter of Undertaking (LUT) is a declaration submitted on the GST Portal in which a taxpayer confirms that they will export goods or services without payment of IGST and comply with all related export conditions. LUT remains valid for one financial year and must be renewed annually. Without a valid LUT, exports become taxable and IGST has to be paid first and claimed back later as a refund.
Who Should File LUT
LUT filing is required for:
- Exporters of goods
- Exporters of services
- Suppliers making zero-rated supplies to SEZ units
- Exporters who want to avoid paying IGST upfront
Any regular GST-registered business engaged in export activity can file an LUT, provided they do not have a history of serious non-compliance.
Benefits of Filing LUT
Filing an LUT provides several operational and financial advantages. Exporters do not need to pay IGST on outward supplies, which eliminates the need to wait for refunds. It helps maintain better liquidity, speeds up customs procedures, avoids financial blockages, and reduces compliance burden.
Documents Required for LUT Filing
LUT filing is a simple process and does not require physical submission of documents. The basic details needed include PAN, GSTIN, legal business information, IEC (for goods exporters), and authorized signatory details. In rare cases, the GST officer may ask for a declaration on business letterhead or previous LUT copies.
LUT Filing Process on GST Portal (2025 Updated)
To file an LUT, log in to the GST Portal and follow this path: Services → User Services → Furnish Letter of Undertaking.
Select the financial year for which you want to file. Some basic details will already be prefilled.
Read the declaration carefully, tick the required checkboxes and proceed to submit.
The submission must be authenticated through DSC or EVC depending on your business type.
Once submitted, the LUT acknowledgement can be downloaded from the “View Submitted LUT” section.
When LUT Should Be Filed
LUT should ideally be filed at the beginning of every financial year. Many exporters file it immediately on or after 1 April to ensure uninterrupted export operations. Exporting without a valid LUT results in IGST liability, interest, and in some cases, a notice from the GST department.
Common Reasons for LUT Rejection
LUT applications may be rejected due to issues such as incorrect financial year selection, outdated DSC, mismatching business details, pending GST returns, or mistakes in the legal name. Ensuring that your GST profile is updated and compliant helps avoid rejections.
Difference Between LUT and Bond
An LUT is accepted for compliant taxpayers, while a Bond may be required for businesses with pending liabilities, non-compliance history, or special cases. A Bond requires a bank guarantee and involves a more detailed verification process. Most regular exporters qualify for LUT and do not need a Bond.
Renewal of LUT
LUT renewal is mandatory every financial year. The portal requires you to submit a fresh LUT and renew it even if nothing has changed. There is no auto-renewal feature. Renewal is simple and takes only a few minutes if the GST profile is updated and returns are filed.
Best Practices for LUT Filing
File the LUT early, maintain a copy of the acknowledgement, ensure timely GST return filing, and update your business information on the portal whenever needed. Exporters should keep their records organized so that they can respond quickly to any verification query from the department.
Professional Assistance for LUT Filing
Many businesses prefer hiring a GST consultant to avoid errors, ensure compliance, and maintain timely filing. Professional support is especially useful for exporters handling high volumes of invoices, multiple branches, or complex documentation.
Kyna FinTax Associates
WZ-1390/Z2, 3rd Floor, Nangal Raya Extension, South West Delhi – 110046
WhatsApp/Call: +91 74210 82222
Email: services@kynafintax.com
Website: https://kynafintax.com