{"id":911,"date":"2025-10-20T00:00:00","date_gmt":"2025-10-20T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/letter-of-undertaking-lut-under-gst\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"letter-of-undertaking-lut-under-gst","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/letter-of-undertaking-lut-under-gst\/","title":{"rendered":"Letter of Undertaking (LUT) Under GST: Meaning, Process &#038; Format Explained"},"content":{"rendered":"<h2 id=\"\"><strong id=\"\">What is a Letter of Undertaking (LUT)?<\/strong><\/h2>\n<p id=\"\">Under the <strong id=\"\">Central Goods and Services Tax (CGST) Act, 2017<\/strong>, a <strong id=\"\">Letter of Undertaking (LUT)<\/strong> 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.<\/p>\n<p id=\"\">An LUT is furnished in <strong id=\"\">Form GST RFD-11<\/strong> 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.<\/p>\n<h2 id=\"\"><strong id=\"\">Eligibility to Obtain a Letter of Undertaking (LUT)<\/strong><\/h2>\n<p id=\"\">Not every business is eligible to file a Letter of Undertaking under GST. The eligibility criteria are clearly defined under GST laws:<\/p>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">Who can apply:<\/strong> Any GST-registered person engaged in the export of goods or services.<\/li>\n<li id=\"\"><strong id=\"\">Conditions:<\/strong> The applicant should not have been prosecuted for any serious tax evasion (exceeding \u20b9250 lakh under GST or any existing law).<\/li>\n<li id=\"\"><strong id=\"\">Submission requirements:<\/strong> The LUT must be furnished online using the prescribed form (<a id=\"\" href=\"https:\/\/tutorial.gst.gov.in\/userguide\/refund\/Furnishing_of_Letter_of_Undertaking.htm\" target=\"_blank\" rel=\"noopener\">GST RFD-11<\/a>) before proceeding with exports.<\/li>\n<li id=\"\"><strong id=\"\">Validity:<\/strong> Once approved, an LUT remains valid for <strong id=\"\">one financial year<\/strong>. Exporters must reapply every year to continue availing the benefits.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">What is the Required Information to File the GST LUT Form?<\/strong><\/h2>\n<p id=\"\">While filing the LUT form on the GST portal, exporters must provide specific details to complete the process accurately. The required information includes:<\/p>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">GSTIN and Legal Name<\/strong> of the taxpayer<\/li>\n<li id=\"\"><strong id=\"\">Financial Year<\/strong> for which the LUT is being filed<\/li>\n<li id=\"\"><strong id=\"\">Details of two independent witnesses<\/strong>, including names, occupations, and addresses<\/li>\n<li id=\"\"><strong id=\"\">Self-declaration statements<\/strong> confirming that the exporter has not been prosecuted for tax evasion and will adhere to GST rules<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Documents Required for a Letter of Undertaking<\/strong><\/h2>\n<p id=\"\">The documentation required to file a Letter of Undertaking under GST is minimal but essential. Exporters should have the following:<\/p>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">Previous LUT Certificate<\/strong> (if applicable)<\/li>\n<li id=\"\"><a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/digital-signature-certificate-dsc\/\"><strong id=\"\">Digital Signature Certificate (DSC)<\/strong><\/a> of the authorised signatory (mandatory for companies and <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/what-is-an-llp-limited-liability-partnership\/\">LLPs<\/a>)<\/li>\n<li id=\"\"><strong id=\"\">Identity proofs<\/strong> and contact details of the witnesses (for first-time filing)<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Who Should Sign a LUT Application?<\/strong><\/h2>\n<p id=\"\">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:<\/p>\n<ul id=\"\">\n<li id=\"\">The <strong id=\"\">Proprietor<\/strong> (in case of a sole proprietorship)<\/li>\n<li id=\"\">The <strong id=\"\">Managing Director<\/strong> or <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/appointment-of-company-secretary\/\"><strong id=\"\">Company Secretary<\/strong><\/a> (for companies)<\/li>\n<li id=\"\">A <strong id=\"\">Working Partner<\/strong> (for <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/what-is-partnership\/\">partnerships<\/a> or LLPs)<\/li>\n<li id=\"\">Any <strong id=\"\">Authorised Individual<\/strong> duly appointed through a board resolution or a <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/power-of-attorney-explained\/\">power of attorney<\/a><\/li>\n<\/ul>\n<p id=\"\">The application must be authenticated using a <strong id=\"\">Digital Signature Certificate (DSC)<\/strong> or an <strong id=\"\">Electronic Verification Code (EVC)<\/strong>.<\/p>\n<h2 id=\"\"><strong id=\"\">How to File a Letter of Undertaking on the GST Portal?<\/strong><\/h2>\n<p id=\"\">Here\u2019s a simple step-by-step guide to filing an LUT on the GST portal:<\/p>\n<ol id=\"\">\n<li id=\"\"><strong id=\"\">Log in<\/strong> to the GST portal.<\/li>\n<li id=\"\">Navigate to: <strong id=\"\">Services \u2192 User Services \u2192 Furnish Letter of Undertaking (LUT)<\/strong>.<\/li>\n<li id=\"\">Select the <strong id=\"\">Financial Year<\/strong> for which the LUT is being filed.<\/li>\n<li id=\"\">Fill in the <strong id=\"\">Form GST RFD-11<\/strong>, including self-declaration and witness details.<\/li>\n<li id=\"\">Attach supporting documents, if required.<\/li>\n<li id=\"\"><strong id=\"\">Sign the application<\/strong> using a <strong id=\"\">DSC<\/strong> or <strong id=\"\">EVC<\/strong>.<\/li>\n<li id=\"\">Upon successful submission, an <strong id=\"\">Application Reference Number (ARN)<\/strong> is generated.<\/li>\n<li id=\"\">You can <strong id=\"\">download and track<\/strong> your submitted LUT under the \u2018My Applications\u2019 section.<\/li>\n<\/ol>\n<p id=\"\">Once approved, exporters can continue exporting without paying <a href=\"https:\/\/razorpay.com\/learn\/what-is-igst\/\">IGST<\/a>, ensuring full compliance with GST laws.<\/p>\n<h2 id=\"\"><strong id=\"\">Is it Acceptable to File a GST LUT Only Once?<\/strong><\/h2>\n<p id=\"\">No, a <strong id=\"\">Letter of Undertaking (LUT)<\/strong> cannot be filed just once. Under GST rules, exporters must <strong id=\"\">file a fresh LUT every financial year<\/strong> to continue exporting without IGST payment.<\/p>\n<p id=\"\">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.<\/p>\n<h2 id=\"\"><strong id=\"\">What Must Be Done When Filing the LUT for the First Time?<\/strong><\/h2>\n<p id=\"\">Exporters must provide additional details and verification when filing the LUT for the <strong id=\"\">first time<\/strong>. <\/p>\n<p id=\"\">Specifically, they must:<\/p>\n<ul id=\"\">\n<li id=\"\">Include details of <strong id=\"\">two independent and reliable witnesses<\/strong>, such as their full names, addresses, and occupations.<\/li>\n<li id=\"\">Submit the application with the <strong id=\"\">authorised signatory\u2019s DSC or EVC<\/strong>.<\/li>\n<\/ul>\n<p id=\"\">Once approved, the exporter can use the same LUT for all exports during that financial year.<\/p>\n<h2 id=\"\"><strong id=\"\">Why is LUT Filing Mandatory for Export Businesses?<\/strong><\/h2>\n<p id=\"\">Filing a Letter of Undertaking (LUT) is <strong id=\"\">mandatory for export businesses<\/strong> under the <strong id=\"\">CGST Act, 2017<\/strong>. It serves multiple purposes:<\/p>\n<ul id=\"\">\n<li id=\"\">Enables exporters to <strong id=\"\">supply goods or services without paying IGST upfront<\/strong><\/li>\n<li id=\"\">Prevents fund blockage and improves <strong id=\"\">working capital efficiency<\/strong><\/li>\n<li id=\"\">Simplifies compliance by eliminating the need for repeated refund claims<\/li>\n<li id=\"\">Demonstrates the exporter\u2019s commitment to <strong id=\"\">adhering to GST norms<\/strong><\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Frequently Asked Questions (FAQs)<\/strong><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Learn what a Letter of Undertaking (LUT) is under GST, its meaning, eligibility, process to apply online, and the prescribed format for exporters in India.<\/p>\n","protected":false},"author":1,"featured_media":912,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=911"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/911\/revisions"}],"predecessor-version":[{"id":1266,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/911\/revisions\/1266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/912"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}