LUT in GST - everything need to know

Updated on April 07, 2025 04:37:16 PM

A LUT in GST is the document of the declaration by the user about the fulfilment of the requirements of the GST. Under the Central Goods and Services Act, 2017 it is compulsory to provide LUT in the form of the GST RFD-11 form, to create export without payment of the IGST otherwise export bond or IGST will be paid. LUT in GST iavalid for one year which needs to be renewed within timeframe.

Process of getting Lut in gst can prove to be complex with documents which are required, different eligibility criteria to be met, applicability stringency. With the help of the professional utilities all matters related to GST were made easy.

A LUT in GST is a written document or agreement between two parties that figure out their mutual understanding. It is the formal understanding regarding their rights, responsibilities, or obligation related to GST between two parties.

All GST exporters of goods and services are required to file a LUT in gst. Below mentioned personnel is eligible to file a Letter of Undertaking in GST

• A person registered under Goods and Services Tax
• Integrated taxes are not paid
• Any person who is outside India
• Places under Special Economic Zone

Steps that need to be followed to generate the E-Way Billing in GST

• Visit GST Portal
• Click on the service tab - then user service - select furnish Letter of Undertaking.
• Select from the drop-down list - LUT applied for the financial year then choose the file.
• Furnish the necessary details in the GST RFD 11.
• Self-declaration (giving independent witness information)
• Enter the Place of filling, click on save then preview.
• Submit a letter of undertaking signed by the authorized signatory and submit to DSC.

When LUT in GST is created online

Even though there is no need the upload any documents few documents need to be submitted -

• Accepted acknowledgment of LUT in GST of the previous year.
• Address and ID proof along with the witness detail.
• Copy of the proof of Consent of the witness for the LUT.
• On the letterhead, LUT in GST should be provided.
• LUT in GST is signed by a partner, managing director, company secretary, or any person duly signed by the company.
• LUT in GST needs to be generated for every financial year as a Letter of the Undertaking is valid for one financial year.
• Any person under GST and Integrated Goods and Services Act having total annual turnover exceeding 2.5 crores is not eligible for the Letter of Undertaking.

When LUT is created offline

Below mentioned documents are required

• Copy of the PAN Card of the entity.
• Duly signed by the authorized person - Letter of Undertaking.
• Copy of GST RFD11 form.
• Cancelled Cheque.
• GST Registration.
• Authorised letter.
• Import Export Code (IEC), if present.
• Authorization letter or board resolution of the partners or authorising the director to file LUT.
• Signature of all the undertakers.
• All Witnesses.

• One to the Jurisdictional Deputy/Assistant Commissioner with jurisdiction over their primary place of business, where the export documents are verified using the ICEGATE platform.
• Custom clearing authority need LUT in GST along with Export document

With the LUT in gst, goods and services can be exported by the exporter without payment of the taxes. Otherwise the exporter has to pay taxes and get a refund by filing zero rated exports. There are many benefits of the LUT in GST as mentioned below -

• It is valid for one year as a burden of the dealer. He does not have to apply for the documentation for every consignment.
• LUT in GST helps in exemption from the taxpaying. Capital get stuck for criteria time if payment is made initially and refunded later. That capital can be used for other requirement.

LUT in GST needs to be accepted within three days along with self declaration. Failure to accept the LUT within a specific time is considered to be accepted.

LUT in GST is the document used by the entrepreneur for export by not paying the GST. This proved to be greatly beneficial to the exporter because it saves the time of getting the refund and that money can be used for other purposes. People having tax evasion of 2.5 crores or more are not eligible to get the lut. There are tough rule, many documents required for the making of the LUT.