LUT Filing under GST for FY 2025-26 – Complete Guide for Exporters & SEZ Suppliers

Introduction

For businesses involved in exports and supplies to Special Economic Zones (SEZs), filing a Letter of Undertaking (LUT) under GST is crucial. It allows exporters to supply goods and services without paying Integrated GST (IGST) upfront, helping businesses manage their cash flow efficiently.

The LUT filing for FY 2025-26 is now open, and businesses must complete the process before March 31, 2025, to ensure compliance and avoid disruptions in export transactions.

This guide will provide a step-by-step process for filing LUT online, its eligibility, benefits, and legal provisions, ensuring you have all the necessary details to stay compliant.

What is a Letter of Undertaking (LUT) under GST?

A Letter of Undertaking (LUT) is a declaration that exporters submit to the GST department, stating that they will comply with all the GST regulations while making zero-rated exports without paying IGST.

🔹 Legal Provision: LUT filing is governed by Rule 96A of the CGST Rules, 2017 and is mandatory for exporters opting for zero-rated supply without IGST payment.

Who Should File LUT?

LUT filing under GST is mandatory for:

✅ Exporters of goods and services who want to export without paying IGST.
✅ Suppliers to Special Economic Zones (SEZs) without paying IGST.
✅ Deemed exporters, such as businesses making supply transactions classified as exports under GST.

Note: If an exporter does not file LUT, they must pay IGST on exports and later claim a refund, which could impact cash flow.

Key Benefits of LUT Filing

✔ Avoids IGST Payment: Businesses can export without paying IGST upfront.
✔ Improves Cash Flow: No need to block capital in tax payments.
✔ Simplifies Compliance: Eliminates the need for refund claims and reduces paperwork.
✔ Valid for One Financial Year: Once filed, LUT remains valid until March 31 of the respective financial year.

LUT Filing Deadline for FY 2025-26

🔹 The last date to file LUT for the financial year 2025-26 is March 31, 2025.
🔹 Exporters must ensure that their LUT is filed before this date to avoid any interruptions in export transactions.
🔹 The previous LUT, filed for FY 2024-25, will expire on March 31, 2025.

Step-by-Step Guide to File LUT Online on GST Portal

🔹 Step 1: Login to GST Portal

• Visit www.gst.gov.in

• Use your GSTIN, username, and password to log in.

🔹 Step 2: Navigate to LUT Filing Section

• Click on Services > User Services > Furnish Letter of Undertaking (LUT)

🔹 Step 3: Select Financial Year

• Choose FY 2025-26 from the dropdown menu.

🔹 Step 4: Upload Supporting Documents

• If required, attach necessary documents such as previous LUT copies.

🔹 Step 5: Accept the Declarations

• Read and tick all the required declarations confirming adherence to GST rules.

🔹 Step 6: Submit LUT Application

• Use Digital Signature Certificate (DSC) or Aadhaar-based E-Signature to submit.

🔹 Step 7: Download Acknowledgment

• Once successfully submitted, download the LUT acknowledgment receipt for future reference.

Documents Required for LUT Filing

📄 GST Registration Certificate
📄 Authorized Signatory Details
📄 PAN Card of Business Entity
📄 Previous LUT (if applicable)
📄 IEC Code (if applicable)

What Happens If LUT is Not Filed?

🚨 If an exporter fails to furnish LUT:
🔸 They must pay IGST on exports and then claim a refund later.
🔸 Refund processing takes time, leading to cash flow issues.
🔸 Delay in compliance could impact business operations and international trade agreements.

Frequently Asked Questions (FAQs)

1. Is LUT filing mandatory for all exporters?

Yes, exporters opting for zero-rated supply without IGST payment must file LUT.

2. What is the validity of LUT under GST?

LUT is valid for one financial year and must be renewed annually.

3. Can I file LUT offline?

No, LUT filing is completely online through the GST portal.

4. What if my LUT application gets rejected?

If rejected, review the rejection reason, rectify any errors, and reapply.

5. Is there any penalty for late LUT filing?

While there is no direct penalty, failure to file means exporters must pay IGST and claim refunds, leading to delays and financial strain.

Final Thoughts

LUT filing is an essential compliance requirement for exporters and SEZ suppliers under GST. Filing on time helps businesses save time, money, and administrative hassle while ensuring a smooth export process.

📢 Ensure your LUT for FY 2025-26 is filed before March 31, 2025, to continue exporting without IGST payment!

#GST #LUTFiling #GSTIndia #Exports #SEZ #TaxCompliance #ZeroRatedSupply #GSTReturns #BusinessGrowth #TaxUpdates #GSTRegistration