Letter of Undertaking (LUT) in GST – Meaning, Format, and Filing Process (

For companies engaged in cross-border trade, efficient GST compliance is operationally critical. The Letter of Undertaking (LUT) lets exporters ship goods or services internationally without upfront IGST payment.

Instead of paying the IGST and later applying for refunds, businesses can instead apply for an LUT, to streamline their cash flow and avoid delays in the business operations. It is especially beneficial for service providers and frequent exporters. But not everyone qualifies, and missing deadlines or filing errors can result in more harm than good.

In this article, we break down everything you need to know about LUT—what it is, who can file it, what documents are needed, and how to submit it online. Let’s get started.

• A Letter of Undertaking or an “LUT” allows exporters to export goods or services without having to pay IGST first, according to the GST rules in India. LUT is filed using Form GST RFD-11. Its benefits include improving cash flow and ease of trade for exporters, along with compliance to GST rules.

• To file for an LUT, exporters must be GST-registered, have no record of tax defaults, and not be prosecuted for tax evasion over ₹2.5 crore. These exporters can sign and submit the LUT annually via the GST portal and gain tax benefits.

• An LUT is valid for one financial year, and must be renewed at the beginning of each year. Missing this window or submitting incorrect details during form submission can delay shipments and disrupt cash flow. With timely renewal, export operations run smoothly.

A Letter of Undertaking (LUT) is a declaration filed by exporters under the Goods and Services Tax (GST) regime in India, is a document that exporters file regulations to export goods or services without paying taxesIntegrated GST. It is filed using Form GST RFD-11 on the GST portal. On acceptance, the requirements for paying taxes on the export upfront are lifted.

LUT is a legal assurance that the exporter will meet all conditions related to the supply, including timely export and tax compliance.

In practical terms, it helps businesses preserve working capital. This is by eliminating the payments towards IGST before the export process.

A Letter of Undertaking (LUT) is required for Indian exporters to send goods or services abroad without paying IGST upfront. It removes the need for refund claims and associated delays in shopping, helps maintain cash flow, and lets you stay GST compliant, particularly if your business deals with global trade.

With the introduction of the LUT mechanism under GST, hence, the government simplified the export compliance process. With its importance clear, the next question is: who can actually file a LUT?

To file an LUT under GST, an exporter must be a registered taxpayer, should not have a history of defaults or pending dues, and have the LUT signed by relevant, authorized personnel. Meeting all eligibility conditions ensures smooth approval and uninterrupted export operations.

Here are the conditions that exporters have to meet, in order to file for LUT:

• Exporter should fill the LUT for exporting goods or services either outside of within India, or under Special Economic Zones (SEZs)
• Exporter as well as the goods and service should be registered under the GST act
• Exporter should not have been prosecuted under CGST or IGST Acts for tax evasion exceeding ₹2.5 crore
• The LUT must be authorized by relevant personnel and supplied on the exporter’s letterhead.
• Exporter should have no pending GST dues or previous instances of defaults

CGST Rules(2017) state that an individual can provide LUT to export goods or services, without paying integrated tax, only if they meet the eligibility criteria. Once eligibility is confirmed, businesses can tap into the full benefits that come with a valid LUT.

The benefits of filing a Letter of Undertaking (LUT) include the ability to export goods or services without paying IGST upfront. It creates better cash flow, avoids refund delays, speeds up logistics, and helps exports run smoothly by lowering tax and paperwork hassles.

Filing an LUT unlocks several benefits for exporters. Some of these are listed below:

1. Tax Exemption

Exporters can avoid paying the IGST at the time of export, bypassing the immediate need for refunds. This can help save both time and effort.

2. Faster logistics

Building on the previous point, exporters benefit by freeing up time and resources to focus on business activities, and provide faster logistics in their export process.

3. Cash flow efficiency

Exporters free up working capital for their operations by not having to pay taxes upfront. This cash flow also supports the ability to offer competitive pricing in the market.

4. Simple renewal process

LUT is valid for one financial year after filing and is easily renewable. This lets exporters enjoy LUT benefits for a prolonged duration.

For high-frequency exporters, filing an LUT helps avoid cash crunches and keeps business operations running smoothly. 

To claim these benefits, however, you’ll need to have the right documents ready. We will look at these in the next section.

To file an LUT under GST, exporters will need documents including a GST registration certificate, PAN ID, IEC certificate, a signed LUT request letter, authorized signatory details, KYC documents, a cancelled cheque, previous LUT (if any), and a valid DSC or EVC for online submission.

When filing LUT, the GST portal requires specific documents to support the LUT application. Here's what you will need for the registration process:

• GST Registration Certificate
• PAN Card of the company
• IEC/Importer Exporter Code Certificate
• Letter signed by authorized person requesting LUT
• Authorized signatory details and KYC
• Cancelled cheque from the company’s bank account
• Previous LUT copy (if applicable)
• Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)

Registering for the LUT lets you file for it using the GST RFD-11 form. Once these documents are in place, the actual filing process is fairly straightforward.

Common mistakes in LUT filing are leaving form fields incomplete, failing to renew the LUT at the start of the financial year, and missing export timelines. These issues can delay approval, affect compliance, or lead to unwanted IGST payments on exports.

Next, mistakes in LUT filing can lead to delays, penalties, or even the need to pay IGST. Here are pitfalls to watch out for.

To file an LUT online, log in to the GST portal, navigate to Services > User Services > Furnish LUT, select the financial year, upload documents, complete declarations, add witness details, and submit using DSC or EVC. An ARN is generated upon submission.

Here's how the filing process works:

1. Login: Visit the GST portal and log in.
2. Navigation: Go to Services > User Services > Furnish Letter of Undertaking (LUT).
3. Select Year: Choose the financial year for which you're applying.
4. Upload: If you’ve filed an LUT previously, upload a scanned copy.
5. Self-declaration: Tick all declaration boxes stating your commitment to the following:

• Export within 3 months from date of issue
• Abide by provisions of the GST Act
• Pay IGST plus eighteen percent interest per annum, from date of invoice till the date of payment
• Witness Details: Enter names, occupations, and addresses of two independent witnesses.

1. Place and Save: Enter place of filing, and the name and place of the authorized signatory > Click SAVE. Preview the form to check that all details have been filled correctly.
2. Sign and Submit:

• Use DSC (mandatory for companies/LLPs) or EVC (for proprietors, partnerships).
• An ARN (Application Reference Number) is generated on successful submission.

You can check previously submitted LUTs from User Services > View my submitted LUTs. Filing is only valid when signed by the correct authority, so let’s look at who that is.

The LUT must be signed by an authorized signatory, who is responsible for filing the verification. This includes: proprietor, managing director, working partner, company secretary, or any person authorised by the board/partner. They can use either a DSC or an EVC, as mentioned above, to finish the filing properly.

LUT renewal is required at the start of each financial year, as it remains valid for one year. To renew LUT, exporters must log in to the GST portal, select the new year, upload the previous year’s LUT, fill out declarations, and submit using DSC or EVC for approval.

Here's a step by step process to apply for LUT renewal at the beginning of each financial year.

1. Login to the GST Portal

Visit the GST portal and sign in with your credentials.

2. Navigate to LUT Section

Click on Services > User Services > Furnish Letter of Undertaking.

3. Select Year & Upload Previous LUT

Choose the relevant financial year and upload the previous LUT (PDF/JPEG under 2MB).

4. Fill Out Declarations & Witness Details

Tick all three declaration checkboxes, enter details for two witnesses and the authorized signatory.

5. Save, Preview & Submit

Enter the place of filing, click Save, Preview, and then file using DSC or EVC.

Some more best practices include ensuring that all previous export obligations have been fulfilled. Remember to keep updated contact details to receive ARN and alerts from the GST portal.

Common mistakes in LUT filing are leaving form fields incomplete, failing to renew the LUT at the start of the financial year, and missing export timelines. These issues can delay approval, affect compliance, or lead to unwanted IGST payments on exports.

Next, mistakes in LUT filing can lead to delays, penalties, or even the need to pay IGST. Here are pitfalls to watch out for.

Another thing to keep in mind is that failing to meet the specific conditions for LUT approval can lead to revoking of the LUT usage itself. In such a case, exporters have to submit a bond and a bank guarantee instead. This bank guarantee cannot exceed 15% of the bond’s value. Playing safe and resolving potential mistakes in LUT filing can keep you away from such predicaments.

With these mistakes in mind, managing LUT filing becomes more predictable, and far less stressful.

In India’s GST regime, the Letter of Undertaking is a foundational document for anyone in the exporting business. It completely simplifies compliance and improves contemporary cash flow. The LUT represents a modern approach to tax governance.

However, accuracy and timely filing are essential. As international business becomes more dynamic, exporters need integrated systems. If you'd prefer to automate and simplify the entire process, there’s a smarter way: Xflow.

Managing LUT filings and export documentation can get complex, fast. Xflow can help you stay compliant in these time crunches. Second, Xflow automates the generation of eFIRA/FIRC certificates as far as possible, so your export documentation stays complete.

Lastly, with enterprise-grade FX infrastructure, you can collect large international payments on a single invoice. With Xflow, exporters can focus on actual fiscal growth.

Book a demo with Xflow today to learn more.