When exporting goods or services from India, compliance with GST regulations is crucial. The Letter of Undertaking (LUT)- a formal assurance provided by exporters to the government- is among the essential documents that simplify export operations.
In simple terms, a Letter of Undertaking allows exporters to supply goods or services abroad without paying Integrated Goods and Services Tax (IGST) at the time of export. This ensures legal compliance and prevents unnecessary blockage of working capital, enabling smoother business operations.
This blog is a comprehensive guide that explains the meaning, process, format, eligibility, and filing steps of a Letter of Undertaking (LUT) under GST.
Table of Contents
What is a Letter of Undertaking (LUT)?
Under the Central Goods and Services Tax (CGST) Act, 2017, a Letter of Undertaking (LUT) is a declaration that allows exporters to make exports without paying IGST upfront. By submitting an LUT, the exporter undertakes to comply with all GST requirements and fulfil export obligations within the stipulated time frame.
An LUT is furnished in Form GST RFD-11 through the GST portal. Once submitted, it ensures that businesses can export without having to claim a refund later for taxes paid, thereby improving liquidity and cash flow management.
Eligibility to Obtain a Letter of Undertaking (LUT)
Not every business is eligible to file a Letter of Undertaking under GST. The eligibility criteria are clearly defined under GST laws:
- Who can apply: Any GST-registered person engaged in the export of goods or services.
- Conditions: The applicant should not have been prosecuted for any serious tax evasion (exceeding ₹250 lakh under GST or any existing law).
- Submission requirements: The LUT must be furnished online using the prescribed form (GST RFD-11) before proceeding with exports.
- Validity: Once approved, an LUT remains valid for one financial year. Exporters must reapply every year to continue availing the benefits.
What is the Required Information to File the GST LUT Form?
While filing the LUT form on the GST portal, exporters must provide specific details to complete the process accurately. The required information includes:
- GSTIN and Legal Name of the taxpayer
- Financial Year for which the LUT is being filed
- Details of two independent witnesses, including names, occupations, and addresses
- Self-declaration statements confirming that the exporter has not been prosecuted for tax evasion and will adhere to GST rules
Documents Required for a Letter of Undertaking
The documentation required to file a Letter of Undertaking under GST is minimal but essential. Exporters should have the following:
- Previous LUT Certificate (if applicable)
- Digital Signature Certificate (DSC) of the authorised signatory (mandatory for companies and LLPs)
- Identity proofs and contact details of the witnesses (for first-time filing)
Who Should Sign a LUT Application?
The LUT application must be signed and verified by an authorised person to be legally valid. Depending on the type of business entity, the authorised signatory could be:
- The Proprietor (in case of a sole proprietorship)
- The Managing Director or Company Secretary (for companies)
- A Working Partner (for partnerships or LLPs)
- Any Authorised Individual duly appointed through a board resolution or a power of attorney
The application must be authenticated using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
How to File a Letter of Undertaking on the GST Portal?
Here’s a simple step-by-step guide to filing an LUT on the GST portal:
- Log in to the GST portal.
- Navigate to: Services → User Services → Furnish Letter of Undertaking (LUT).
- Select the Financial Year for which the LUT is being filed.
- Fill in the Form GST RFD-11, including self-declaration and witness details.
- Attach supporting documents, if required.
- Sign the application using a DSC or EVC.
- Upon successful submission, an Application Reference Number (ARN) is generated.
- You can download and track your submitted LUT under the ‘My Applications’ section.
Once approved, exporters can continue exporting without paying IGST, ensuring full compliance with GST laws.
Is it Acceptable to File a GST LUT Only Once?
No, a Letter of Undertaking (LUT) cannot be filed just once. Under GST rules, exporters must file a fresh LUT every financial year to continue exporting without IGST payment.
If a business fails to renew the LUT for the new year, they must either pay IGST on exports or immediately furnish a new LUT to remain compliant.
What Must Be Done When Filing the LUT for the First Time?
Exporters must provide additional details and verification when filing the LUT for the first time.
Specifically, they must:
- Include details of two independent and reliable witnesses, such as their full names, addresses, and occupations.
- Submit the application with the authorised signatory’s DSC or EVC.
Once approved, the exporter can use the same LUT for all exports during that financial year.
Why is LUT Filing Mandatory for Export Businesses?
Filing a Letter of Undertaking (LUT) is mandatory for export businesses under the CGST Act, 2017. It serves multiple purposes:
- Enables exporters to supply goods or services without paying IGST upfront
- Prevents fund blockage and improves working capital efficiency
- Simplifies compliance by eliminating the need for repeated refund claims
- Demonstrates the exporter’s commitment to adhering to GST norms
Frequently Asked Questions (FAQs)
Private Limited Company
(Pvt. Ltd.)
- Service-based businesses
- Businesses looking to issue shares
- Businesses seeking investment through equity-based funding
Limited Liability Partnership
(LLP)
- Professional services
- Firms seeking any capital contribution from Partners
- Firms sharing resources with limited liability
One Person Company
(OPC)
- Freelancers, Small-scale businesses
- Businesses looking for minimal compliance
- Businesses looking for single-ownership
Private Limited Company
(Pvt. Ltd.)
- Service-based businesses
- Businesses looking to issue shares
- Businesses seeking investment through equity-based funding
One Person Company
(OPC)
- Freelancers, Small-scale businesses
- Businesses looking for minimal compliance
- Businesses looking for single-ownership
Private Limited Company
(Pvt. Ltd.)
- Service-based businesses
- Businesses looking to issue shares
- Businesses seeking investment through equity-based funding
Limited Liability Partnership
(LLP)
- Professional services
- Firms seeking any capital contribution from Partners
- Firms sharing resources with limited liability
Frequently Asked Questions
Who is eligible to file a GST LUT?
Any GST-registered exporter who is engaged in the export of goods or services or in supplying to a Special Economic Zone (SEZ) without payment of Integrated GST (IGST) is eligible to file a Letter of Undertaking (LUT).
However, the exporter must not have been prosecuted for any tax evasion exceeding ₹250 lakh under the CGST Act or any existing law.
How often does an exporter need to file the GST LUT?
A Letter of Undertaking (LUT) is valid for one financial year. To continue exporting goods or services without paying IGST, exporters must file a new LUT every financial year.
Who should sign the LUT application?
An authorised business signatory must sign the LUT application to ensure its legal validity. Depending on the type of entity:
- For a proprietorship, the proprietor must sign.
- For a partnership or LLP, a working partner or authorised person may sign.
- For a company, the Managing Director, Company Secretary, or any authorised signatory can sign.
The application must be verified on the GST portal using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
What happens if an exporter fails to export goods or services after filing the LUT?
If an exporter fails to export goods or services within the stipulated time frame (usually three months from the date of issue of the export invoice) after filing the LUT, they become liable to pay IGST along with applicable interest.
What is the purpose of having independent witnesses for the LUT?
Independent witnesses serve as a verification mechanism to ensure the authenticity of the undertaking submitted by the exporter.
Their inclusion in the LUT filing, particularly during the first-time submission, adds credibility, confirming that the exporter has voluntarily agreed to the terms of compliance under GST law.
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Swagatika Mohapatra is a storyteller & content strategist. She currently leads content and community at Razorpay Rize, a founder-first initiative that supports early-stage & growth-stage startups in India across tech, D2C, and global export categories.
Over the last 4+ years, she’s built a stronghold in content strategy, UX writing, and startup storytelling. At Rize, she’s the mind behind everything from founder playbooks and company registration explainers to deep-dive blogs on brand-building, metrics, and product-market fit.
