Guide
LUT for Exports: How to Export GST-Free Without IGST Refund Hassles
Last reviewed: May 2026 · Sourced from official government portals
What Lut Actually Is
LUT stands for Letter of Undertaking. It's an annual declaration filed on the GST portal by exporters who want to ship goods or services out of India without paying IGST upfront. The undertaking says: I'll comply with all export procedures, and if I don't, I'll pay the IGST plus interest. With an LUT in place, your zero-rated export invoices can be raised without any GST loaded onto them. Without one, you have to pay IGST on every export and then claim it back as a refund, which ties up cash.
Lut Versus Igst Refund Route
Under GST, exports are zero-rated, which gives you two equally legal options.
| Option | How it works | Cash flow impact |
|---|---|---|
| LUT route (preferred) | File LUT once a year, then export without GST | No GST paid on exports, no refund needed |
| IGST refund route | Pay IGST on every export, claim refund later | GST locked up for 60–90 days per shipment |
For software, services and SaaS exporters, the LUT route is essentially mandatory because the IGST refund route involves submitting BRC/FIRC and other paperwork on each export which gets impractical at volume.
Who Can File Lut
Any GST-registered exporter is eligible, with a few exceptions.
- •Both goods exporters and service exporters can file LUT.
- •SEZ developers and SEZ units exporting from India are eligible.
- •There's no minimum turnover threshold.
- •The exporter must not have been prosecuted under GST law for tax evasion above Rs 2.5 crore in the past, otherwise the IGST route is the only option.
When Lut Is Filed
LUT is valid for a financial year. So an LUT filed for FY 2026-27 covers exports made between 1 April 2026 and 31 March 2027. A new LUT must be filed each year, ideally before 1 April so there's no gap in coverage. Filings between April and June for the current FY are accepted but exports made in the gap days have to use the IGST route.
For first-time exporters, file LUT as soon as you register your first export-related GSTIN. Don't wait for the first shipment.
How To File Lut (the Actual Process)
LUT is filed entirely online on the GST portal. The process takes about 15 minutes and approval is usually instant.
- •Login to gst.gov.in with the GSTIN of the exporting entity.
- •Go to Services > User Services > Furnish Letter of Undertaking (LUT).
- •Pick the financial year for which the LUT is being filed.
- •Enter the name, full residential address (with PIN code), and occupation of two independent witnesses (employees, suppliers, or any individuals not connected to ownership). The witnesses do not need to sign anything physically or provide an OTP, only their details are captured. The form does not require GSTIN or PAN of the witnesses.
- •Self-declare that you'll comply with export rules and pay any tax due if conditions are violated.
- •Submit using DSC (mandatory for companies and LLPs) or EVC (allowed for proprietors and partnerships).
- •Download the acknowledgement (ARN) and the LUT certificate immediately.
What Goes Wrong Most Often
LUT is one of the simpler GST procedures, but a few patterns cause delay.
- •Witnesses must be independent. Don't list co-founders, family or directors of the exporting company.
- •DSC must be active and the authorised signatory's PAN must match the registered signatory on GSTIN.
- •Filing for a future year before 1 April fails. The portal opens for a new FY filing only after April begins.
- •Acceptance of LUT does not waive the need to file your regular GST returns (GSTR-1, GSTR-3B). Both run independently.
What Happens If You Export Without Lut
If you export without an active LUT, you're treated as having opted for the IGST route. The export invoice must include IGST at the applicable rate, the IGST is paid through GSTR-3B for the month, and a refund is claimed via GSTR-1 (export with payment of tax) plus a separate refund application. Refund timelines are 60 days from receipt of complete application, but in practice the cash sits with the government for 2 to 3 months.
Lut Expiry And Renewal
LUT is valid only for the financial year it covers. Set a reminder for late March each year to file the new LUT. If you forget and export in early April without renewal, those specific shipments need IGST treatment retrospectively, which is messier than just renewing on time.
Lut Vs Bond: What's The Difference
Some businesses (typically those with past GST violations) cannot file an LUT and must instead furnish a Bond backed by a bank guarantee for 15% of the bond amount. Bond is more expensive (bank guarantee fees plus margin money) and has stricter renewal procedures. For most clean-record exporters, LUT is the only route they'll ever need.
Frequently Asked Questions
How we reviewed this page
The penalty amounts, deadlines, and regulatory requirements on this page are sourced directly from official government portals. We do not use secondary sources. When regulations change, we update the page.
- GST Portal↗
Official GST portal for LUT filing under User Services.
- CBIC Circular No. 8/8/2017-GST↗
Initial circular outlining LUT and bond requirements for exporters.
- Section 16, IGST Act 2017↗
Zero-rated supply provisions covering exports and SEZ supplies.
Book this service on Ollvy
GST Monthly Filing
GST Registration
₹1,499 · 7 working days
Want to do it yourself?