GST Letter of Undertaking (LUT) — Annual Filing Process and Key Details

A Letter of Undertaking (LUT) under GST allows registered exporters to export goods and services without paying Integrated GST (IGST) at the time of export — they instead undertake to realise the export proceeds and comply with GST rules. Filing the LUT on time every year is essential for exporters. Here is the complete guide specifically to the LUT filing process.

Who Can File an LUT?

• Any GST-registered person who is an exporter of goods or services — or supplies to SEZ units/developers
• Must NOT have been prosecuted for tax evasion involving an amount of ₹2.5 crore or more under the CGST Act or IGST Act in any prior year
• If disqualified — must furnish a bond (with surety) instead of LUT

LUT Filing Process — Step by Step

• Login to gstin.gov.in → Services → User Services → Furnish Letter of Undertaking (LUT)
• Select the financial year for which LUT is being filed
• Fill in Form RFD-11 — confirm the undertakings given (export within 3 months of invoice, realise payment within 1 year of export)
• Sign with Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)
• Submit — LUT is granted instantly online
• Download the LUT reference number/document

Validity and Conditions

• LUT is valid for the entire financial year — from April 1 to March 31
• Must be renewed every year before the first export of the new financial year
• Undertaking given: Goods to be exported within 3 months of tax invoice date (extension can be requested from the jurisdictional Commissioner)
• Foreign exchange proceeds to be realised within the period prescribed by RBI (generally 12 months for goods)

Consequences of Not Filing LUT

• If LUT is not filed before an export — the exporter must pay IGST on the export invoice and then claim a refund
• IGST refund requires additional working capital — potentially delayed by the refund processing time
• If exports are made without IGST payment and without LUT — treated as non-compliance

Conclusion

Filing the annual LUT is a simple but critical step for every GST-registered exporter — enabling export without upfront IGST payment. SPOTON handles LUT filing, export GST compliance and ITC refund claims for exporters across Kerala. Contact us for expert GST export compliance services.