GST LUT Filing for Exporters
The Letter of Undertaking that lets you export without paying IGST upfront, filed for the financial year so your working capital stays in the business rather than in a refund queue.
What it is
GST LUT Filing refers to the Goods and Services Tax (GST) Letter of Undertaking (LUT) Filing. It is a declaration filed by a taxpayer under the GST regime to export goods or services without paying any Integrated Goods and Services Tax (IGST). LUT allows businesses to claim a refund of the tax paid on inputs and capital goods used for exporting goods and services.
Documents required
1. GST Registration Certificate
The GST registration certificate of the business,
The GST registration certificate of the business, which confirms that the business is registered under GST.
The Permanent Account Number (PAN) card of the bus
The Permanent Account Number (PAN) card of the business or the proprietor (in case of a sole proprietorship).
Bank account information (account number, IFSC cod
Bank account information (account number, IFSC code, and bank name) for verification and refund purposes.
Supporting documents showing the nature of the bus
Supporting documents showing the nature of the business activity, such as export invoices, sales agreements, or purchase documents related to the export of goods/services.
Audited financial statements of the business for t
Audited financial statements of the business for the previous financial year, to show that the business is tax-compliant and in good standing.
Copies of the recently filed GST returns (GSTR-3B
Copies of the recently filed GST returns (GSTR-3B and GSTR-1) to confirm tax compliance and that no dues are pending.
If the business is already exporting, documents li
If the business is already exporting, documents like export bills, shipping bills, or export invoices to show that the business is engaged in exports.
2. PAN Card
3. Bank Account Details
4. Proof of Business Activity
5. Financial Statements
6. GST Returns (GSTR-3B, GSTR-1)
7. Export Documents (if applicable)
How the filing works
o file GST LUT (Letter of Undertaking) for export in India, log in to the GST portal, navigate to the “Services” section, and submit the application under the “LUT/ Bond” tab for export transactions. This enables exporters to make zero-rated exports without paying IGST.
Why it matters
Exemption from IGST Payment on Exports
Zero-IGST Export
GST LUT filing enables businesses to export goods and services without paying IGST, saving costs on upfront payments.
Faster Refund Process
Since IGST is not paid, businesses can avoid the refund process altogether. Input tax credit (ITC) on purchases related to export can be claimed.
Smooth Export Procedure
The LUT simplifies the export process, reducing the need to pay IGST on exports, and ensuring the seamless flow of goods and services.
Cost Savings
Avoiding upfront IGST payment helps exporters reduce their working capital requirements.
Increased Competitiveness
Exporters can maintain a competitive edge in the global market by avoiding the tax burden on exported goods and services.
Cash Flow Management
By using LUT, businesses can manage cash flow effectively and eliminate delays in refund processing.
Exporters can export goods and services without paying IGST, reducing upfront tax expenses.
Improved Cash Flow
By not paying IGST upfront, businesses can enhance their cash flow and reinvest savings into their operations.
Faster Refund Process.
LUT filing allows exporters to claim input tax credit (ITC) on purchases related to exports more quickly, speeding up the refund process.
Simplified Export Process
Filing the LUT simplifies the export process, eliminating the need to pay IGST and deal with lengthy refund procedures.
Ensures Legal Compliance
Filing the GST LUT ensures that exporters comply with GST regulations, helping avoid penalties and legal complications.
How we help
Hiring a GST consultant or professional ensures accurate filing and saves time, especially for businesses unfamiliar with the process. A professional will handle the entire process, from registration to submission, and ensure compliance with all GST regulations. The fee for such services varies based on the consultant or firm.
How we work
Fill up the Form to Complete the Payment
Our GST LUT Filing Experts will Call You
Upload the Details, Documents as requested
The Expert will Prepare and ask for Your Approval for GST LUT Filing
Filing of Your GST LUT will be Done!
GST LUT for Service Export
GST LUT can be used for service exports to ensure exemption from IGST. This includes export of services such as consultancy, software, or any other business service. Filing GST LUT for service export ensures that IGST is not levied on services exported from India.
What it costs
Starting from ₹35000 per year. The final figure depends on your transaction volume and the number of registrations you run — ask us and you will get a number rather than a range.
There are no registration fees for filing a GST LUT (Letter of Undertaking). It is a free process facilitated by the GST portal. However, businesses must ensure they meet the eligibility criteria to file for an LUT.
GST LUT filing service charges typically depend on the service provider or professional hired. Charges can vary from ₹500 to ₹5,000 or more, based on the complexity and the professional assistance required. Some tax consultants may offer this service as part of a broader export-related package.
There are several affordable GST LUT registration services available in India, offering reasonable prices for GST registration and LUT filing. You can find budget-friendly consultants or online platforms that provide these services starting from ₹500, depending on the complexity of your export business.
Frequently asked
What is GST LUT?
GST LUT (Letter of Undertaking) is a document filed by exporters to export goods and services without paying Integrated Goods and Services Tax (IGST). It is a declaration to comply with the tax regulations on exports.
Who is eligible to file GST LUT?
Businesses engaged in exporting goods and services can file GST LUT. It is mandatory for exporters to file LUT instead of paying IGST, which can later be refunded.
How do I file GST LUT?
GST LUT can be filed online through the GST Portal by logging into your GST account, filling out the required details, and submitting the form along with necessary documents.
What is the validity of GST LUT?
The GST LUT is valid for one financial year. It needs to be renewed at the beginning of each new financial year if the business continues to export.
Can I file GST LUT if I am a new exporter?
Yes, new exporters can file GST LUT. However, first-time exporters might need to provide additional supporting documents to verify their export activities.
How to Apply for GST LUT in India?
To apply for GST LUT in India, log in to the official GST portal, navigate to the “Services” section, and select the “Letter of Undertaking” option. Fill in the required details and submit the application. Once approved, you’ll receive an acknowledgment
What is the Last Date for Filing GST LUT?
There is no specific deadline for filing GST LUT, but it should be done before initiating export transactions for the respective financial year. Typically, businesses are required to submit the LUT before the start of the financial year to ensure zero-rated export benefits.
Can GST LUT Be Filed After the Due Date?
Yes, you can file GST LUT after the due date; however, you must pay IGST on export transactions until your LUT is approved. The IGST paid can later be refunded after successful export, but it’s always better to file it on time to avoid delays and extra payments.
Do I Need GST LUT for Export of Goods?
Yes, GST LUT is required for export of goods to avail zero-rated export benefits. The LUT ensures that you do not need to pay IGST at the time of export and helps you claim refunds later.
Is GST LUT Required for Service Export?
Yes, GST LUT is also required for the export of services under GST to ensure that the services are exported without paying IGST. Service exporters must file an LUT to enjoy the exemption from tax.
How to Cancel GST LUT After Approval?
To cancel an approved GST LUT, log in to the GST portal, go to the “LUT” section, and request for cancellation. You’ll need to provide a reason for cancellation, and the request will be processed accordingly.
Can I File GST LUT Without a Bond?
Yes, GST LUT can be filed without a bond. GST LUT is an alternative to the GST bond for exporters who meet the eligibility criteria. GST LUT allows exporters to export goods and services without paying IGST, without the need for a financial guarantee or bond.
What Happens if GST LUT is Not Filed?
If GST LUT is not filed, exporters must pay IGST on all export transactions. This amount can be refunded later, but the process can delay your cash flow. Not filing the LUT may also cause compliance issues with the GST authorities.
How to Track GST LUT Application Status?
You can track the status of your GST LUT application by logging into the GST portal, going to the “Track Application Status” section, and entering your GSTIN and application details. The portal will show the current status, such as “Under Process” or “Approved”.
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