How to Do GST LUT Filing Online Without Paying IGST

For Applying GST LUT Filling Click Here…

Introduction

For businesses involved in the export of goods or services, managing GST compliance can feel complex and time-consuming. One such important compliance requirement is GST LUT filing online. Many exporters are unsure about what a Letter of Undertaking (LUT) is, why it is required, and how it helps them save tax outflow.

GST LUT filing online allows exporters to supply goods or services outside India without paying IGST upfront, making exports more cost-effective and smoother. Understanding this process is essential for exporters who want to avoid unnecessary tax payments, penalties, or delays in refunds. In this blog, we will explain what GST LUT filing online means and why it is crucial for exporters in simple and practical terms.

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What is GST LUT Filing Online?

GST LUT filing online refers to the process of submitting a Letter of Undertaking (LUT) on the GST portal by registered exporters. An LUT is a declaration given by the exporter stating that they will comply with all GST rules while exporting goods or services without payment of Integrated GST (IGST).

Under GST law, exporters have two options:

1. Export goods or services by paying IGST and later claim a refund, or
   
2. Export without paying IGST by completing GST LUT filing online.
   

By filing LUT online, the exporter commits that:

• The goods or services will be exported within the prescribed time limit
  
• All GST rules and conditions will be followed
  
• Any tax liability, if applicable, will be paid along with interest
  

GST LUT filing online is done once for a financial year and remains valid throughout the year. This online facility has replaced the old manual process, making compliance faster, paperless, and more transparent for exporters.

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Why GST LUT Filing Online is Important for Exporters

GST LUT filing online plays a vital role in improving cash flow and reducing compliance burden for exporters. If exporters do not file LUT, they are required to pay IGST on exports and wait for a refund, which can take time and block working capital.

Here’s why GST LUT filing online is important for exporters:

• No upfront tax payment: Exporters can supply goods or services without paying IGST, helping them save money immediately.
  
• Better cash flow: Since no tax is paid at the time of export, working capital is not blocked in refund processes.
  
• Simplified compliance: GST LUT filing online is done digitally on the GST portal, reducing paperwork and physical visits.
  
• Faster export operations: Exporters can focus on business growth instead of managing tax refunds.
  
• Legal compliance: Filing LUT ensures exporters remain compliant with GST laws and avoid penalties or notices.

Basics & Meaning

Before understanding the process of GST compliance for exports, it is important to clearly understand the basics of LUT under GST. Many exporters often confuse LUT with bonds or refunds, which leads to mistakes. Knowing the meaning, eligibility, and alternatives helps exporters choose the right option and stay compliant. This section explains the core concepts related to GST LUT filing online in a simple and easy-to-understand manner.

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Meaning of LUT Under GST

LUT stands for Letter of Undertaking. Under GST, an LUT is a written declaration submitted by an exporter to the government, confirming that they will export goods or services without payment of IGST and comply with all GST laws.

When an exporter completes GST LUT filing online, they promise that:

• The export of goods will be completed within 90 days, or
  
• The export of services will be completed within one year, and
  
• Any tax liability arising due to non-compliance will be paid along with interest.
  

The main purpose of an LUT under GST is to allow exporters to make zero-rated supplies without blocking funds in the form of IGST payments. GST LUT filing online has made this process completely digital, eliminating the need for physical submission and approvals.

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Who Should Do GST LUT Filing Online?

GST LUT filing online should be done by any GST-registered person who is involved in exporting goods or services and wants to export without paying IGST upfront.

Typically, the following businesses should file LUT online:

• Exporters of goods outside India
  
• Exporters of services to foreign clients
  
• Businesses supplying goods or services to SEZ units or SEZ developers
  
• Startups and freelancers providing services internationally
  

However, GST LUT filing online is allowed only if the exporter has not been prosecuted for tax evasion exceeding the prescribed limit under GST laws. If a taxpayer is not eligible to file LUT, they must opt for a GST Bond instead.

Filing LUT on time ensures smooth export operations and prevents unnecessary tax payments or refund delays.

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Difference Between GST LUT and GST Bond

Many exporters are confused between GST LUT filing online and filing a GST Bond. While both serve a similar purpose, there are important differences between the two.

Basis	GST LUT	GST Bond
Purpose	Export without payment of IGST	Export without IGST when LUT is not allowed
Filing Method	GST LUT filing online on GST portal	Bond submission with bank guarantee
Financial Impact	No security or bank guarantee required	Bank guarantee may be required
Validity	Valid for one financial year	Valid till obligation is fulfilled
Complexity	Simple and paperless	More complex and costly

In simple terms, GST LUT filing online is a quicker, easier, and more cost-effective option. GST Bond is used only when the exporter does not meet the eligibility criteria for LUT.

Eligibility Criteria for GST LUT Filing Online

A taxpayer must fulfill the following eligibility requirements to apply for GST LUT filing online:

1. GST Registration is Mandatory
   Only GST-registered persons can file an LUT. Unregistered exporters are not eligible for GST LUT filing online.
   
2. Exporter of Goods or Services
   Any person exporting goods or services outside India or supplying to SEZ units/developers can apply for GST LUT filing online.
   
3. No Serious GST Prosecution History
   The applicant should not have been prosecuted for tax evasion involving an amount exceeding the limit prescribed under GST law. This condition ensures that only compliant taxpayers are allowed to export without IGST payment.
   
4. Valid Digital Signature or EVC
   The exporter must have access to a valid Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) to complete GST LUT filing online on the GST portal.
   
5. Annual Filing Requirement
   GST LUT filing online must be done once at the beginning of every financial year to continue exporting without payment of IGST.
   

If an exporter does not meet these eligibility criteria, they must opt for filing a GST Bond instead of LUT.

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Conditions to File LUT Under GST

When completing GST LUT filing online, exporters must agree to certain conditions laid down under GST law. These conditions are legally binding and must be followed strictly.

The key conditions to file LUT under GST are:

• Timely Export of Goods or Services
  Goods must be exported within 90 days from the date of invoice, and services must be exported within one year.
  
• Payment of Tax on Non-Compliance
  If the exporter fails to meet export timelines or conditions, they must pay the applicable GST along with interest.
  
• Use Only for Zero-Rated Supplies
  GST LUT filing online is applicable only for zero-rated supplies such as exports and SEZ supplies.
  
• Validity for One Financial Year
  An LUT is valid only for the financial year in which it is filed and must be renewed every year.
  
• Adherence to GST Rules
  The exporter must comply with all GST return filing requirements and other statutory obligations.

Documents & Requirements

Although GST LUT filing online is a simple and paperless process, exporters must keep certain documents and information ready before starting the application on the GST portal. Having the correct documents and details in place ensures smooth filing and helps avoid errors, rejections, or delays. This section explains exactly what is required for successful GST LUT filing online.

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Documents Required for GST LUT Filing Online

One of the biggest advantages of GST LUT filing online is that it does not require physical submission of documents. However, the following documents or records should be available with the exporter for reference and compliance purposes:

1. GST Registration Certificate
   A valid GSTIN is mandatory to file LUT online.
   
2. PAN of the Business or Applicant
   The Permanent Account Number linked with the GST registration must be active and valid.
   
3. Authorization Letter (if applicable)
   If the LUT is being filed by an authorized signatory, proper authorization should be in place.
   
4. Digital Signature Certificate (DSC) or EVC Access
   GST LUT filing online must be verified using DSC (for companies/LLPs) or Electronic Verification Code (EVC).
   
5. Export Invoices and Records (for reference)
   While not uploaded, export-related documents should be maintained for future verification or audits.
   

No bank guarantee, stamp paper, or physical documents are required for GST LUT filing online, making it a cost-effective option for exporters.

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Details Needed Before Filing LUT on GST Portal

Before starting GST LUT filing online on the GST portal, exporters should keep the following details ready to avoid interruptions during the process:

• Legal Name of Business (as per GST registration)
  
• GSTIN and Registered Address
  
• Financial Year for Which LUT is Being Filed
  
• Name, Designation, and Address of Authorized Signatory
  
• Witness Details (Name, Address, and Occupation of two witnesses, if applicable)
  
• Contact Details (Registered email ID and mobile number linked to GST)
  

Ensuring that all these details are accurate and updated on the GST portal is crucial for successful GST LUT filing online. Any mismatch in information can lead to errors or rejection of the LUT application.

Step-by-Step Process of GST LUT Filing Online

Follow the steps below to complete GST LUT filing online for a financial year:

1. Login to the GST Portal
   Visit the official GST portal and log in using your valid GSTIN, username, and password.
   
2. Navigate to LUT Filing Option
   Go to:
   Services → User Services → Furnish Letter of Undertaking (LUT)
   
3. Select the Financial Year
   Choose the relevant financial year for which you want to apply for GST LUT filing online.
   
4. Fill in LUT Details
   The form will auto-populate basic business details. Verify them carefully and agree to the declarations and undertakings mentioned.
   
5. Enter Witness Details
   Provide the name, address, and occupation of two witnesses, if required.
   
6. Submit the Application
   Verify the application using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
   
7. Acknowledgement Generation
   After successful submission, an acknowledgement with an Application Reference Number (ARN) will be generated.
   

Once submitted, GST LUT filing online is usually approved instantly, and the LUT becomes active for the selected financial year.

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How to File GST LUT Online on GST Portal

To file GST LUT filing online correctly on the GST portal, keep these points in mind:

• Ensure your GST returns are up to date before filing LUT
  
• Use the correct financial year while submitting the form
  
• Verify all auto-filled details carefully
  
• Keep your DSC or registered mobile/email ready for verification
  

After filing, you can download the approved LUT from the portal and use it as proof while exporting goods or services without paying IGST.

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GST LUT Filing Online Screenshot-Wise Process (Optional)

If you want to make your blog more user-friendly, you can add screenshots for each stage of GST LUT filing online, such as:

1. GST portal login page
   
2. LUT filing menu navigation
   
3. Financial year selection screen
   
4. LUT declaration page
   
5. Submission and acknowledgement page

Validity & Due Dates

Understanding the validity and due dates related to GST LUT filing online is crucial for exporters. Filing LUT on time ensures uninterrupted exports without payment of IGST. Missing deadlines or using an expired LUT can lead to tax payment obligations and compliance issues. This section explains when to file, how long the LUT remains valid, and when renewal is required.

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GST LUT Filing Online Due Date

There is no fixed statutory calendar date prescribed for GST LUT filing online, but exporters are advised to file LUT at the beginning of every financial year, preferably before making the first export.

Key points to remember:

• GST LUT filing online should ideally be completed on or before 1st April of the financial year
  
• If LUT is not filed, exporters must pay IGST on exports until the LUT is approved
  
• Late filing does not attract a penalty, but it may cause cash flow blockage due to IGST payment
  

To avoid disruptions, exporters should ensure GST LUT filing online is completed well in advance.

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Validity Period of GST LUT

Once approved, GST LUT filing online is valid for one financial year, from 1st April to 31st March.

Important validity highlights:

• LUT remains active for the entire financial year in which it is filed
  
• A fresh LUT must be filed every year, even if there are no changes in business details
  
• An expired LUT cannot be used for exports in the next financial year
  

Using an invalid or expired LUT may result in the requirement to pay IGST on export invoices.

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When to Renew GST LUT Online

Renewal of GST LUT filing online is mandatory every financial year. Exporters should renew LUT:

• At the start of the new financial year
  
• Before issuing any export invoice for that year
  
• Even if exports are occasional or seasonal
  

Best practice is to renew GST LUT filing online in April itself to ensure continuous eligibility for zero-rated exports. Early renewal helps exporters avoid last-minute issues and ensures smooth export operations throughout the year.

Export-Related Use

For businesses engaged in international trade, GST LUT filing online plays a key role in simplifying export transactions. Whether you export physical goods or provide services to clients abroad, filing LUT allows you to make zero-rated supplies without paying IGST upfront. This section explains how GST LUT filing online applies to exports of goods and services and clarifies whether exporting without LUT is possible under GST.

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GST LUT Filing Online for Export of Goods

Exporters of goods can use GST LUT filing online to ship products outside India without paying IGST at the time of export. This option is especially beneficial for manufacturers, traders, and MSMEs, as it helps preserve working capital.

Key points for exporters of goods:

• Goods must be exported within 90 days from the date of issuing the export invoice
  
• Export invoices should clearly mention that the supply is made under LUT without payment of IGST
  
• LUT must be valid for the financial year in which the export takes place
  

By completing GST LUT filing online, exporters of goods can avoid the refund process and ensure smoother customs and compliance procedures.

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GST LUT Filing Online for Export of Services

Service exporters can also benefit significantly from GST LUT filing online. Services provided to foreign clients qualify as zero-rated supplies if GST conditions for export of services are fulfilled.

Important considerations for service exporters:

• Services must be supplied to a recipient located outside India
  
• Payment for services should be received in convertible foreign exchange (subject to GST rules)
  
• Export of services must be completed within one year from the invoice date
  

GST LUT filing online allows freelancers, consultants, IT service providers, and startups to export services without paying IGST and waiting for refunds.

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Can You Export Without LUT Under GST?

Yes, exporters can export without LUT under GST, but it comes with a financial impact. If GST LUT filing online is not done, the exporter must:

• Pay IGST on export invoices
  
• Claim a refund of the IGST paid after exports are completed
  

While this option is legally allowed, it often leads to cash flow blockage and delays in refund processing. Therefore, GST LUT filing online is the preferred and more practical option for most exporters.

Errors & Solutions

Although GST LUT filing online is a simple and digital process, exporters often face errors due to minor mistakes or lack of awareness. These issues can delay approval or disrupt export activities. Understanding common errors, knowing how to check LUT status, and being aware of corrective steps can help exporters resolve problems quickly and stay compliant.

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Common Errors in GST LUT Filing Online

Some of the most common mistakes made during GST LUT filing online include:

1. Selecting the Wrong Financial Year
   Filing LUT for an incorrect financial year can make it invalid for current exports.
   
2. Incomplete or Incorrect Details
   Errors in business name, authorized signatory details, or witness information may lead to rejection.
   
3. Using an Expired or Invalid DSC/EVC
   Submission may fail if the Digital Signature Certificate has expired or if EVC details are not properly linked.
   
4. Pending GST Returns
   Although not mandatory in all cases, pending GST returns can sometimes cause system-level issues during GST LUT filing online.
   
5. Late Filing of LUT
   Exporting goods or services before filing LUT can result in the requirement to pay IGST on those supplies.
   

Avoiding these mistakes ensures smooth and quick approval of GST LUT filing online.

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How to Check GST LUT Status Online

After submitting GST LUT filing online, exporters can easily check the status on the GST portal by following these steps:

1. Log in to the GST portal using your credentials
   
2. Go to Services → User Services → View My Submissions
   
3. Select the LUT option and choose the relevant financial year
   
4. Check the status shown (Submitted / Approved / Rejected)
   

Once approved, you can download the LUT acknowledgement and keep it for your export records.

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What to Do If GST LUT is Rejected

If GST LUT filing online is rejected, there is no need to panic. Rejection usually occurs due to minor issues that can be corrected easily.

Here’s what you should do:

• Check the rejection reason mentioned on the GST portal
  
• Correct the errors or update missing details
  
• File a fresh LUT application for the same financial year
  
• Ensure all declarations and verification steps are completed properly
  

There is no penalty for re-filing LUT. Once the corrected application is submitted, GST LUT filing online is generally approved without further issues.

Conclusion: Why You Should File GST LUT Online on Time

Filing GST LUT filing online on time is one of the smartest compliance decisions for exporters. It allows businesses to export goods and services without paying IGST upfront, improves cash flow, and reduces dependency on refund mechanisms.

Timely GST LUT filing online ensures uninterrupted export operations, avoids unnecessary tax payments, and keeps businesses compliant with GST regulations. Since the process is simple, paperless, and valid for an entire financial year, exporters should make it a priority at the beginning of every year.

Frequently Asked Questions on GST LUT Filing Online