What Is GST LUT Filing, and When Is It Required?

As far as trade and exports are concerned, your cash flow is either made or broken in taxes. When you're dealing with overseas customers, you'll be paying GST on goods or services that are exempt for you by law. The answer? GST LUT Filing. 

In this step-by-step procedure, StartupFlora—India's trusted portal for startup registration and tax compliance—will inform you regarding GST LUT filing, eligibilities, process, renewal, documents, and its first effect on your business. 

What is GST LUT Filing? 

LUT stands for Letter of Undertaking. LUT under India Goods and Services Tax is a compliance under which the exporters can export goods or services without the payment of IGST (Integrated GST). 

Exports would be zero-rated supply in GST, i.e.,   

• You pay IGST and refund subsequently, or   

• You provide an LUT and export without payment of tax in advance   

The government avoids congesting this channel so as not to make the exporters hold unnecessary work capital in the form of tax. 

Example  Assume you are operating a SaaS business where US customers pay $5,000 monthly. You would need to pay 18% GST on every invoice without LUT and refund on a monthly basis. 

When you use LUT filing, you are paying the invoice net of GST, and your money stays where you want it to—it's in your business. 

Why LUT is important? 

LUT filing: 

• Saves payment of IGST on export 

• Facilitates hassle-free billing without any legal issue 

• Improves working capital efficiency 

• Saves time and effort on GST refund 

• Improves customer creditworthiness (especially foreign) 

Whether it's exporting physical goods, digital goods, or far-off services—GST LUT is your passport to global trade without a bump. 

Who are Eligible to File a GST LUT? 

As per Rule 96A of the CGST Rules, filing of LUT is mandatory for all GST registered taxpayers who export the following: 

• Foreign buyers or overseas consumers as services 

• SEZ units or SEZ developers as inputs 

These are 

• Freelance services, online marketing, content, tech services to overseas customers 

• SaaS, web services, or fintech firms selling abroad 

• Export units of exportable goods for exports 

• MSMEs selling exports via e-commerce 

• Service firms accepting customers' payment in USD, GBP, EUR, etc. 

Legal Basis For Filing of LUT 

Exports works as a zero-rated supply under the Integrated Goods and Services Tax Act. You shall never pay GST—if you furnish an undertaking (LUT) to assent that you shall comply with GST law and regulation. 

In default of furnishing an LUT, technically you pay IGST, and then claim refund under Section 54 of the CGST Act. 

This leads to blocking of working capital and enhanced complexity of compliance. 

Mandatory Filing of LUT 

You have to file a GST LUT: 

• Prior to any zero-rated supply, i.e., invoice of export 

• Once in a year in a financial year  

• Again in case your previous LUT is rejected, is going to expire or has expired 

Important Note: Fresh LUT should be filed at start of new financial year so that one can continue to export without IGST. 

What if I did not File an LUT? 

If you fail to furnish LUT: 

• You will be subject to IGST on export bills 

• You may export but under temporary taxation 

• You are supposed to submit refund applications under RFD-01 

• Refunds are 30–90 days behind schedule, affecting liquidity 

• Such non-conformity repeatedly can subject you to GST scrutiny or penalty 

Documents Required for GST LUT Filing 

Although the process is online and document-free, you should have the following ready: 

Required Item	Description
GSTIN	Active GST number linked with PAN
PAN	Of the company or proprietor
Aadhaar	For OTP verification of the authorized signatory
LUT Form	Auto-generated on GST portal
Digital Signature (DSC) or EVC	Required to complete filing
Previous LUT (if applicable)	For renewal and record keeping

If you're filing for the first time, StartupFlora will help generate the format and submit your application correctly. 

 Step-by-Step Guide: How to File LUT on the GST Portal 

Online submission of LUT is easy through the following steps: 

Step 1: Login to www.gst.gov.in using your GST login id/password.

Step 2: Select Services  then User Services & the go for Furnish Letter of Undertaking (LUT). 

Step 3: Select suitable financial year.

Step 4: Agree with declaration terms and click "Proceed". 

Step 5: Validate by way of either: 

• Digital Signature Certificate (DSC) for companies/LLPs. 

• Electronic Verification Code (EVC) through Aadhaar OTP in the case of others 

Step 6: Save the acknowledgment and filed LUT PDF. Hold on to it for reference. 

You will also receive an email notification by GSTN. 

Validity & LUT Renewal 

• Your LUT is valid from the filing date up to such a financial year end 

• New LUT must be filed every year, though business information may not vary 

• Renewal is faster in case of regular filers 

• GST-zero-rated exports can lapse due to delay in renewal 

Auto-reminders and reminder notices are issued through StartupFlora, and you never miss the deadline. 

Steer Clear of These Blunders 

• LUT on print of export invoices delayed filing. 

• Mismatch filing PAN/GSTIN data 

• Submission of stale DSCs on filing 

• Happy ending ever, single filing 

• Not downloading or saving confirmation of LUT submission 

These may incur late refund charges or penalties. That is why thousands of companies rely on StartupFlora to file it on their behalf. 

Why File GST LUT with StartupFlora? 

More than 2,500 exporters, freelancers, and SaaS companies have relied on us for continued compliance, GST late payment avoidance, and stress-free finances. 

Our services are: 

• One-time filing of GST LUT 

• Renewal of LUT  

• Error correction & document support 

• Post-filing support 

• Refund application (RFD-01) as needed 

• GST invoicing & exporter returns support 

Whether you're an individual founder or a growth-stage tech firm, we've got your back—so you can focus on business, not paperwork. 

Last Thoughts – File Early, Save Big 

File your Letter of Undertaking (LUT) and you are doing a small thing that creates a big difference in your export business. 

It: 

• Saves you from unnecessary tax payments 

• Simplifies invoicing and order realization 

• Improves your liquidity 

• Makes you GST export compliant according to the law 

We at StartupFlora provide you with each and every step of the process, be it registration or refund.