Process to File and Renew Your LUT for FY 2025-26

Process to File and Renew Your LUT for FY 2025-26. If you are an exporter or a supplier to Special Economic Zones (SEZs), it is time to renew or file your Letter of Undertaking (LUT) for the Financial Year 2025-26. The Goods and Services Tax Network (GSTN) has now activated the LUT filing functionality on the GST Portal, enabling businesses to continue availing tax-free exports without disruption. Since the current LUT for FY 2024-25 is valid only until March 31, 2025, it is essential to furnish the new LUT before this deadline to ensure seamless export operations. Exporters who wish to supply goods or services without paying Integrated GST (IGST) must file their LUT annually, making it crucial to renew on time for uninterrupted compliance.
Submitting the LUT for FY 2025-26 before March 31, 2025, is mandatory for businesses planning to export or supply to SEZs in the upcoming financial year. Failure to do so could lead to complications in export procedures and additional tax liabilities. The process of filing the LUT has been streamlined on the GST Portal for convenience. To submit the LUT, navigate to Dashboard > Services > User Services > Furnish Letter of Undertaking, select the applicable financial year, and proceed with the application.
To simplify your GST compliance and ensure a hassle-free filing process, consider partnering with experts who can handle the documentation efficiently. Stay ahead in the global marketplace by renewing your LUT on time and continue enjoying the benefits of tax-free exports without unnecessary delays.
What is LUT?
An LUT is a document furnished by an exporter to the Government asserting that the goods or services they are exporting will be subject to export provisions under GST. The primary purpose of the LUT is to allow exporters to export goods or services without the need to pay an Integrated Goods and Services Tax (“IGST”) on such exports. This is particularly beneficial for businesses as it eliminates the upfront tax burden on exported goods and services.
In the absence of an LUT, exporters would have to pay IGST on export sales but can claim a refund later. The LUT simplifies this process by allowing exporters to bypass the payment of IGST, provided they meet specific conditions set by the GST authorities.
Who is Eligible to File an LUT?
Under the GST law, businesses that intend to export goods or services without the payment of IGST are eligible to file an LUT. However, only certain types of exporters can avail of this benefit:
1. Registered Exporters: The business must be a registered taxpayer under GST, whether they are under the regular GST scheme or the composition scheme (if applicable).
2. Export of Goods or Services: The LUT can be filed if the exporter is dealing in the export of goods or services and not in exempted goods or services.
3. No Default in Filing Returns: The exporter must not have defaulted on any GST returns or payments. Compliance with tax filings is mandatory to qualify for LUT filing.
4. No Past Record of Fraud or Evading Taxes: If the business has a history of fraud or tax evasion, the authorities may deny the LUT application.
Advantages of Filing an LUT
The filing of an LUT offers several advantages for exporters:
1. Zero-rated Exports: Exporters are allowed to export goods or services without paying IGST, which provides substantial cash flow advantages.
2. Simplified Process: Exporters who file an LUT do not need to deal with the hassle of paying IGST upfront and subsequently claiming refunds.
3. Competitive Edge: By availing the benefits of an LUT, exporters can price their goods or services more competitively by avoiding additional tax burdens.
4. Simplified Compliance: By filing an LUT, exporters maintain compliance with the GST regime while meeting legal obligations efficiently.
Documents Required to File an LUT for FY 2025-26
While the process is simple, exporters should be prepared with the following documents and information to ensure smooth filing:
1. GST Registration Certificate: Proof of your business’s GST registration.
2. Previous LUT/Bond Details: If applicable, provide information on any previously filed LUT or bond.
3. GST RFD-11 Form: This is an official form that has to be filed and digitally signed to file and complete the LUT application. 
4. Business Details: Basic information like the business address, GSTIN, and nature of the export.
5. Financial Details: Details related to financial performance may be required in some cases, especially for new exporters or those seeking to establish credibility.
6. GST Returns: Proof of timely filing of past GST returns to ensure eligibility for LUT filing.
Process to File an LUT for FY 2025-26
Filing an LUT under GST can be done easily online via the GST portal. The process is straightforward, requiring accurate details and timely submission to ensure smooth operation. The following steps outline how to file an LUT under GST:
Step 1: Log in to the GST Portal
To begin the LUT filing process, visit the official GST portal https://www.gst.gov.in/ and log in using your GST credentials. The login page will prompt you to enter your GST Identification Number (“GSTIN”) and password.
Step 2: Move to the LUT Application Section
After logging in, proceed to the ‘Services’ tab on the top menu. Under the ‘User Services’ section, click on ‘Furnish Letter of Undertaking (LUT).’ This option will direct you to the page where you can file a new LUT or renew an existing one.
Step 3: Select the Financial Year
In the application form, select the appropriate financial year for which you intend to file the LUT. The financial year is essential to determine the validity of the LUT.
Step 4: Fill in the Details
The LUT application requires basic details such as:

Name of the exporter

GSTIN of the exporter

Address and contact details

Declaration regarding the export of goods or services without paying IGST

Information regarding any previous LUT or bond details, if applicable.

Make sure all information is accurate and up-to-date to avoid delays in processing your LUT.
Step 5: Submit the Application
Once the form is filled out, carefully review the information for any errors. After verification, apply for review by the GST authorities. The system will automatically generate an acknowledgment receipt once the submission is complete.
Step 6: Obtain the LUT Approval
Upon successful submission, the application is sent for approval. Typically, GST authorities will process the LUT application within a few days, and once approved, a digitally signed copy of the LUT will be issued. Exporters can download the LUT document from the GST portal.
Form GST RFD-11 for Filing LUT
All registered taxpayers involved in the supply of zero-rated goods or services are mandated to submit a Letter of Undertaking (LUT) by filing Form GST RFD-11 on the GST Portal prior to commencing such supplies. The deadline for submitting Form GST RFD-11 (LUT) for the Financial Year 2025-26 is set for March 31, 2025.
When to File an LUT?
The LUT must be filed annually for each financial year, and exporters should ensure that they file the LUT at the beginning of the financial year. If the exporter is new or has just started the export business, the LUT can be filed as soon as the GST registration is complete.
It is essential to file the LUT within the specified time to avoid penalties or the requirement to furnish a bank guarantee or bond. In the absence of an LUT, exporters will be liable to pay IGST on exports, which they may later claim as a refund.
How to Renew an LUT for FY 2025-26?
An LUT is valid for one financial year. Exporters must ensure that they file for LUT renewal before the expiry of the current one. The process of renewing an LUT is almost identical to the initial filing procedure, with the difference being that the exporter will only need to submit the renewal application and provide any updated details, if applicable.
Step 1: Log in to the GST Portal
As with the initial filing, log in to the GST portal using your credentials.
Step 2: Select the LUT Renewal Option
From the ‘Services’ tab, navigate to the ‘User Services’ section and select ‘Renew Letter of Undertaking (LUT).’
Step 3: Submit the Renewal Application
Fill in the required details, confirm that there are no pending tax dues, and submit the application.
Step 4: Approval and Issuance of Renewed LUT
The process remains the same as the initial filing. Once the GST authorities process the renewal, the renewed LUT will be available for download.
Consequences of Failing to File or Renew an LUT
Failure to file or renew an LUT can have significant consequences for exporters. If an LUT is not filed or renewed before the start of the financial year, the exporter may be required to pay IGST on their export transactions. While the exporter can claim a refund of the IGST later, the upfront payment and the delays involved may impact the business’s cash flow.
Moreover, GST authorities may impose penalties or restrictions on future exports, making it imperative to ensure timely filing and renewal of the LUT.
Conclusion
The process of filing and renewing an LUT under GST is designed to simplify the export process for businesses in India. By ensuring that you file your LUT within the required timelines and maintain good tax compliance, your business can enjoy significant advantages, including zero-rated exports and a smoother workflow. Businesses engaged in international trade must ensure that they adhere to the statutory deadlines for LUT filing and renewal to maintain their competitive advantage and prevent unnecessary disruptions in their export activities.
FAQs
Q1. What if an exporter doesn't file an LUT?
Ans. They must pay IGST on exports and can claim a refund later, potentially facing delays and tying up working capital.
Q2. Can an LUT application be rejected?
Ans. Yes, if the exporter doesn't meet eligibility criteria, has compliance issues, or a history of fraud.
Q3. Is it mandatory to file an LUT electronically on the GST portal, or are there alternative methods?
Ans. Yes, filing an LUT electronically through the GST portal is mandatory. The online system ensures secure submission, faster processing, and easy tracking of your application.
Q4. Can a business with multiple GST registrations file a single LUT, or is a separate LUT required for each registration?
Ans. A separate LUT is required for each GST registration. This is because each registration represents a distinct legal entity under the GST law.
Q5. What is the validity period of an LUT, and when should it be renewed for FY 2025-26?
Ans. An LUT is valid for the entire financial year in which it is filed. To ensure continuous export benefits for FY 2025-26, you should renew your LUT before the end of the previous financial year, i.e., before March 31, 2025.

If you are an exporter or a supplier to Special Economic Zones (SEZs), it is time to renew or file your Letter of Undertaking (LUT) for the Financial Year 2025-26. The Goods and Services Tax Network (GSTN) has now activated the LUT filing functionality on the GST Portal, enabling businesses to continue availing tax-free exports without disruption. Since the current LUT for FY 2024-25 is valid only until March 31, 2025, it is essential to furnish the new LUT before this deadline to ensure seamless export operations. Exporters who wish to supply goods or services without paying Integrated GST (IGST) must file their LUT annually, making it crucial to renew on time for uninterrupted compliance.

Submitting the LUT for FY 2025-26 before March 31, 2025, is mandatory for businesses planning to export or supply to SEZs in the upcoming financial year. Failure to do so could lead to complications in export procedures and additional tax liabilities. The process of filing the LUT has been streamlined on the GST Portal for convenience. To submit the LUT, navigate to Dashboard > Services > User Services > Furnish Letter of Undertaking, select the applicable financial year, and proceed with the application.

To simplify your GST compliance and ensure a hassle-free filing process, consider partnering with experts who can handle the documentation efficiently. Stay ahead in the global marketplace by renewing your LUT on time and continue enjoying the benefits of tax-free exports without unnecessary delays.

What is LUT?

An LUT is a document furnished by an exporter to the Government asserting that the goods or services they are exporting will be subject to export provisions under GST. The primary purpose of the LUT is to allow exporters to export goods or services without the need to pay an Integrated Goods and Services Tax (“IGST”) on such exports. This is particularly beneficial for businesses as it eliminates the upfront tax burden on exported goods and services.

In the absence of an LUT, exporters would have to pay IGST on export sales but can claim a refund later. The LUT simplifies this process by allowing exporters to bypass the payment of IGST, provided they meet specific conditions set by the GST authorities.

Who is Eligible to File an LUT?

Under the GST law, businesses that intend to export goods or services without the payment of IGST are eligible to file an LUT. However, only certain types of exporters can avail of this benefit:

1. Registered Exporters: The business must be a registered taxpayer under GST, whether they are under the regular GST scheme or the composition scheme (if applicable).

2. Export of Goods or Services: The LUT can be filed if the exporter is dealing in the export of goods or services and not in exempted goods or services.

3. No Default in Filing Returns: The exporter must not have defaulted on any GST returns or payments. Compliance with tax filings is mandatory to qualify for LUT filing.

4. No Past Record of Fraud or Evading Taxes: If the business has a history of fraud or tax evasion, the authorities may deny the LUT application.

Advantages of Filing an LUT

The filing of an LUT offers several advantages for exporters:

1. Zero-rated Exports: Exporters are allowed to export goods or services without paying IGST, which provides substantial cash flow advantages.

2. Simplified Process: Exporters who file an LUT do not need to deal with the hassle of paying IGST upfront and subsequently claiming refunds.

3. Competitive Edge: By availing the benefits of an LUT, exporters can price their goods or services more competitively by avoiding additional tax burdens.

4. Simplified Compliance: By filing an LUT, exporters maintain compliance with the GST regime while meeting legal obligations efficiently.

Documents Required to File an LUT for FY 2025-26

While the process is simple, exporters should be prepared with the following documents and information to ensure smooth filing:

1. GST Registration Certificate: Proof of your business’s GST registration.

2. Previous LUT/Bond Details: If applicable, provide information on any previously filed LUT or bond.

3. GST RFD-11 Form: This is an official form that has to be filed and digitally signed to file and complete the LUT application.

4. Business Details: Basic information like the business address, GSTIN, and nature of the export.

5. Financial Details: Details related to financial performance may be required in some cases, especially for new exporters or those seeking to establish credibility.

6. GST Returns: Proof of timely filing of past GST returns to ensure eligibility for LUT filing.

Process to File an LUT for FY 2025-26

Filing an LUT under GST can be done easily online via the GST portal. The process is straightforward, requiring accurate details and timely submission to ensure smooth operation. The following steps outline how to file an LUT under GST:

Step 1: Log in to the GST Portal

To begin the LUT filing process, visit the official GST portal https://www.gst.gov.in/ and log in using your GST credentials. The login page will prompt you to enter your GST Identification Number (“GSTIN”) and password.

Step 2: Move to the LUT Application Section

After logging in, proceed to the ‘Services’ tab on the top menu. Under the ‘User Services’ section, click on ‘Furnish Letter of Undertaking (LUT).’ This option will direct you to the page where you can file a new LUT or renew an existing one.

Step 3: Select the Financial Year

In the application form, select the appropriate financial year for which you intend to file the LUT. The financial year is essential to determine the validity of the LUT.

Step 4: Fill in the Details

The LUT application requires basic details such as:

Name of the exporter
GSTIN of the exporter
Address and contact details
Declaration regarding the export of goods or services without paying IGST
Information regarding any previous LUT or bond details, if applicable.

Make sure all information is accurate and up-to-date to avoid delays in processing your LUT.

Step 5: Submit the Application

Once the form is filled out, carefully review the information for any errors. After verification, apply for review by the GST authorities. The system will automatically generate an acknowledgment receipt once the submission is complete.

Step 6: Obtain the LUT Approval

Upon successful submission, the application is sent for approval. Typically, GST authorities will process the LUT application within a few days, and once approved, a digitally signed copy of the LUT will be issued. Exporters can download the LUT document from the GST portal.

Form GST RFD-11 for Filing LUT

All registered taxpayers involved in the supply of zero-rated goods or services are mandated to submit a Letter of Undertaking (LUT) by filing Form GST RFD-11 on the GST Portal prior to commencing such supplies. The deadline for submitting Form GST RFD-11 (LUT) for the Financial Year 2025-26 is set for March 31, 2025.

When to File an LUT?

The LUT must be filed annually for each financial year, and exporters should ensure that they file the LUT at the beginning of the financial year. If the exporter is new or has just started the export business, the LUT can be filed as soon as the GST registration is complete.

It is essential to file the LUT within the specified time to avoid penalties or the requirement to furnish a bank guarantee or bond. In the absence of an LUT, exporters will be liable to pay IGST on exports, which they may later claim as a refund.

How to Renew an LUT for FY 2025-26?

An LUT is valid for one financial year. Exporters must ensure that they file for LUT renewal before the expiry of the current one. The process of renewing an LUT is almost identical to the initial filing procedure, with the difference being that the exporter will only need to submit the renewal application and provide any updated details, if applicable.

Step 1: Log in to the GST Portal

As with the initial filing, log in to the GST portal using your credentials.

Step 2: Select the LUT Renewal Option

From the ‘Services’ tab, navigate to the ‘User Services’ section and select ‘Renew Letter of Undertaking (LUT).’

Step 3: Submit the Renewal Application

Fill in the required details, confirm that there are no pending tax dues, and submit the application.

Step 4: Approval and Issuance of Renewed LUT

The process remains the same as the initial filing. Once the GST authorities process the renewal, the renewed LUT will be available for download.

Consequences of Failing to File or Renew an LUT

Failure to file or renew an LUT can have significant consequences for exporters. If an LUT is not filed or renewed before the start of the financial year, the exporter may be required to pay IGST on their export transactions. While the exporter can claim a refund of the IGST later, the upfront payment and the delays involved may impact the business’s cash flow.

Moreover, GST authorities may impose penalties or restrictions on future exports, making it imperative to ensure timely filing and renewal of the LUT.

Conclusion

The process of filing and renewing an LUT under GST is designed to simplify the export process for businesses in India. By ensuring that you file your LUT within the required timelines and maintain good tax compliance, your business can enjoy significant advantages, including zero-rated exports and a smoother workflow. Businesses engaged in international trade must ensure that they adhere to the statutory deadlines for LUT filing and renewal to maintain their competitive advantage and prevent unnecessary disruptions in their export activities.

FAQs

Q1. What if an exporter doesn't file an LUT?

Ans. They must pay IGST on exports and can claim a refund later, potentially facing delays and tying up working capital.

Q2. Can an LUT application be rejected?

Ans. Yes, if the exporter doesn't meet eligibility criteria, has compliance issues, or a history of fraud.

Q3. Is it mandatory to file an LUT electronically on the GST portal, or are there alternative methods?

Ans. Yes, filing an LUT electronically through the GST portal is mandatory. The online system ensures secure submission, faster processing, and easy tracking of your application.

Q4. Can a business with multiple GST registrations file a single LUT, or is a separate LUT required for each registration?

Ans. A separate LUT is required for each GST registration. This is because each registration represents a distinct legal entity under the GST law.

Q5. What is the validity period of an LUT, and when should it be renewed for FY 2025-26?

Ans. An LUT is valid for the entire financial year in which it is filed. To ensure continuous export benefits for FY 2025-26, you should renew your LUT before the end of the previous financial year, i.e., before March 31, 2025.