GST LUT Filing for Exporters with Delfyle

What is LUT in GST?

The full form of LUT is Letter of Undertaking. Under the GST regime, an LUT enables exporters to supply goods or services without the payment of Integrated Goods and Services Tax (IGST). This helps businesses avoid the burden of upfront tax payments and reduces the need for claiming refunds later.

Exporters must file LUT in Form GST RFD-11 every financial year to avail of tax-free exports.

Who Should File LUT under GST?

• ✔ Registered taxpayers exporting goods or services
• ✔ Suppliers to Special Economic Zones (SEZs)
• ✔ Businesses providing services to clients outside India

Note: Taxpayers prosecuted for tax evasion exceeding ₹2.5 crores are not eligible to file an LUT.

Eligibility Criteria for Filing LUT

• ✔ Must be a registered GST taxpayer
• ✔ Should be engaged in export of goods/services or SEZ supplies
• ✔ Should not have a history of serious tax evasion
• ✔ Must intend to make zero-rated supplies without IGST payment

Validity of LUT

An LUT remains valid for one financial year. Exporters must submit a fresh LUT every year to continue availing of IGST exemption. If the exporter fails to comply with LUT conditions, the LUT can be revoked and a bond may be required instead.