Filing LUT in GST for Exporters: A Comprehensive Guide

The Letter of Undertaking (LUT) under GST is a vital document for exporters, enabling them to conduct zero-rated supplies without paying Integrated Goods and Services Tax (IGST) upfront. Filed annually through Form GST RFD-11 on the GST portal, the LUT simplifies compliance, eliminates the complexities of tax refunds, and ensures that working capital remains unblocked, which is particularly beneficial for SMEs. Exporters must meet specific eligibility criteria, including GST registration and a clean tax record, to avail of this benefit. Key advantages include tax-free exports, streamlined processes, and reduced financial strain. Ineligible entities can furnish bonds with bank guarantees as an alternative. Proper documentation, including GST registration, PAN, KYC, and a cover letter, is essential for filing. Adhering to guidelines ensures seamless export operations, making the LUT an indispensable tool for businesses aiming to expand globally while maintaining tax efficiency.