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lut under gst registrations,

LUT under GST

Exporting goods and services are now part of many businesses. To get benefit under zero-rated and export without payment of taxes, make sure you file Letter of Undertaking under GST for whole Financial Year.

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What is Letter of Undertaking?

Letter of Undertaking is abbreviated as LUT. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid. Filing LUT is convenient than refund mode as the exporters do not wish to indulge into hassles of refunds and block their funds. The eligibility criteria to apply for LUT is comparatively relaxed than to the erstwhile system.

Letter of Undertaking is filed online using the form GST RFD 11. By filing LUT, the exporter undertakes that all the requirements prescribed for this route will be fulfilled by him.

Benefits of filing LUT under GST

Exports without tax payment

By filing LUT under GST, an exporter can export goods or services without paying the taxes. If LUT is not filed, the exporter must first pay the required tax while making exports and then claim a refund to avail benefit of zero-rated exports.

Saves Working Capital

The regular exporters are at a huge benefit by filing LUT online as the refund process under another route is a time-consuming process. During which the bunch of capital is blocked in the form of a due refund. With this mode, the capital is free to be utilized for other necessary requirements. It also reduces the cost of exports.

An Entire Financial Year Validity

The Letter of Undertaking, once filed is valid for the whole financial year in which it is filed. Hence, unlike refund process, an exporter does not need to go through the procedural requirements every time an export consignment is carried out.

Simple and online process

The filing of LUT and its acceptance, both are made online since April, 2018. The applicant does not need to visit the officers for acceptance. The whole process can be completed online by submitting a few required documents.

Documents required for LUT filing

Entity’s PAN Card

A Copy of PAN card of the exporter entity

KYC of Authorized Signatory

A Copy of PAN card and Aadhar card of partners/directors


Information of at least two witnesses along with the address proof and PAN

GST Registration

GST Registration Certificate of the exporter is required

IEC Certificate

The IEC certificate must be submitted

IEC Certificate

The IEC certificate must be submitted

Explore Letter of Undertaking under GST

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