Quick Summary
LUT allows exporters to export goods or services without payment of IGST. It is filed annually on GST portal and is mandatory for zero-rated supplies without tax payment.
Letter of Undertaking (LUT) is a document that an exporter files to export goods or services without payment of Integrated Goods and Services Tax (IGST).
Who Can File LUT
- Registered persons intending to supply goods/services for export
- Must have not been prosecuted for tax evasion > ₹2.5 crore
- Works for both goods and services exports
Bond vs LUT
- LUT: File online, no bank guarantee required for most exporters
- Bond: Required if LUT not filed, may require bank guarantee
Filing Process
- Login to GST portal
- Navigate to User Services > Furnish LUT
- Fill Form RFD-11
- Upload self-declaration
- Sign with DSC/EVC
- Download acknowledgement
Validity
LUT is valid for the financial year in which it is filed. Must file fresh LUT for each financial year by 31st March or start of exports.
Consequences of Non-Compliance
If export conditions not met within stipulated time, exporter must pay IGST with 18% interest.
Key Points
- Export without IGST payment
- Filed annually on GST portal
- Valid for financial year
- Available to eligible exporters
- Alternative to Bond with bank guarantee
- Must meet export timeline conditions