GST LUT Filing

GST LUT Filing refers to the submission of a Letter of Undertaking (LUT) by exporters under the Goods and Services Tax (GST) system. The LUT is a declaration that allows exporters to export goods or services without paying Integrated GST (IGST). It is an alternative to paying IGST and subsequently claiming a refund.

What is a Letter of Undertaking (LUT) ?

• A Letter of Undertaking is a document filed by exporters declaring that they will fulfill all GST requirements while exporting goods or services without payment of IGST.
• It is filed online on the GST portal and is valid for the financial year in which it is filed .

Who Can File LUT Under GST ?

1. Eligible Exporters:
   • Exporters of goods or services.
   • Suppliers making zero-rated supplies to SEZ units or developers.
2. Conditions for Filing LUT:
   • The exporter should not have been prosecuted for tax evasion exceeding ₹250 lakh under GST or any other tax law.
   • If the exporter does not meet the conditions, they can export by paying IGST and claiming a refund later.

Benefits of Filing LUT

1. No IGST Payment: Enables tax-free exports, avoiding the hassle of paying IGST and waiting for refunds.
2. Improved Cash Flow: Eliminates the need for blocking working capital in taxes.
3. Compliance with GST Rules: Simplifies the process of exporting goods or services under GST.

When to File LUT?

• LUT must be filed at the beginning of each financial year.
• If not filed, exporters must pay IGST on their exports and claim a refund later.