Mastering GST Letter of Undertaking (LUT) for Indian Exporters in 2026

1. What is a GST Letter of Undertaking (LUT)?

Under the Indian Goods and Services Tax (GST) framework, exporting services or goods out of India is classified as a "zero-rated supply". This means the export itself does not attract tax, allowing businesses to remain competitive globally. However, by default, the law requires exporters to either pay Integrated GST (IGST) upfront and later claim a refund, or export under a bond/LUT without paying tax.

A Letter of Undertaking (LUT) (filed electronically via Form GST RFD-11 on the official GST portal) allows registered taxpayers to supply services or goods abroad without payment of IGST. Filing an LUT saves exporters from getting their working capital stuck in long government refund processing queues.

2. Who is Eligible to File an LUT?

As per Notification No. 37/2017-Central Tax, almost all registered GST taxpayers who intend to export goods or services are eligible to furnish an LUT, except those who have been prosecuted for any offense under the GST Act or Indian Penal Code where the tax evasion amount exceeds ₹250 Lakhs.

3. Mandatory Declarations on Export Invoices

When operating under an LUT, your commercial export invoices cannot be drafted like ordinary domestic invoices. They must strictly include specific statutory declarations to be accepted by authorized dealer (AD) banks and tax authorities.

Every export invoice generated via Zoffs automatically embeds the required legal wording:

Additionally, your invoice must clearly display your active ARN (Acknowledgment Reference Number) and LUT number alongside client foreign currency breakdowns and INR converted totals.

4. Step-by-Step Procedure to File LUT on the GST Portal

1. Log in to the GST Portal: Access your taxpayer dashboard using valid credentials.
2. Navigate to Services: Go to Services > User Services > Furnish Letter of Undertaking (LUT).
3. Select Financial Year: Choose the upcoming financial year for which the LUT is being submitted.
4. Fill Declarations: Ensure check-boxes confirming that you will export goods/services within specified timeframes and comply with GST provisions are selected.
5. Witness Details: Provide details of two independent witnesses (name, address, occupation) as required by the statutory format.
6. Sign & Submit: File the application using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC via Aadhaar OTP). Upon successful submission, your ARN and LUT reference number are generated instantly.

5. Validity and Annual Renewal Deadlines

An LUT is valid for the entire financial year (from April 1st to March 31st) in which it is filed.

Crucial Warning: You must renew your LUT every single year before April 1st. Failing to renew your LUT before raising invoices in the new financial year can result in your invoices being treated as taxable supplies, forcing you into complex IGST payment and refund cycles. Zoffs helps track your profile expiry dates so you never miss a renewal deadline.