What is a GST Letter of Undertaking (LUT)?

A GST Letter of Undertaking (LUT) is a declaration submitted by an exporter stating they will comply with GST regulations for exporting goods or services without paying IGST. Under Notification No. 37/2017 – Central Tax, filing an LUT is mandatory for exporters who wish to export without paying IGST. Without an LUT, exporters are required to either pay IGST or submit an export bond.

Eligibility Criteria for GST LUT Filing

To file an LUT under GST, you must meet the following conditions:

 

You export goods or services to foreign countries or Special Economic Zones (SEZs).

 

You are registered under GST.

 

You have not been prosecuted under any tax law where the tax exceeds Rs. 250 lakhs.

The GST LUT Filing must be done on the company's letterhead, signed by an authorized person (partner, MD, or company secretary), and submitted annually.

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Process of GST LUT Filing
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Filing your GST LUT online is simple with BizMantra. Follow these steps:

 

Log in to the GST portal.

 

Navigate to the Services Tab > User Services > Furnish LUT.

 

Select the financial year for the GST LUT Filing.

 

Attach any previous offline LUT (if applicable).

 

Fill in the necessary details, agree to the declarations, and submit.

 

Provide details of two independent witnesses.

 

Sign using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

After submission, you will receive an acknowledgment via email and SMS.

Validity of LUT

The GST LUT is valid for one financial year. Exporters must refile an LUT each year. If the exports are not completed within three months, or payments are not received within one year for services, IGST must be paid with 18% interest.

Documents Required for GST LUT Filing

When filing a GST LUT, you must submit:

 

A self-declaration stating compliance with all GST LUT terms.

 

No prosecution certificate as per Notification No. 37/2017.