How to File and Renew Your LUT for FY 2025-26?

Are you an exporter looking to continue enjoying the seamless benefits of the Letter of Undertaking (LUT)? Now is the perfect time to renew or file your LUT for the Financial Year (FY) 2025-26. The Goods and Services Tax Network (GSTN) has officially activated the functionality on the GST Portal, making it easier than ever to furnish your LUT. Remember, exporters and suppliers to Special Economic Zones (SEZs) must renew their LUTs annually, as the current LUT for FY 2024-25 will expire on March 31, 2025. Don’t miss out on uninterrupted export operations and tax benefits—ensure your LUT is updated today and keep your business thriving in the global marketplace!

Ready to Renew or File Your LUT? Join thousands of satisfied exporters and SEZ suppliers who have streamlined their GST compliance with IndiaFilings. Click the button below to get started and secure your LUT today!

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GST Portal Activates LUT Filing for Financial Year 2025-26

The Goods and Services Tax Network (GSTN) has now enabled the functionality to furnish the Letter of Undertaking (LUT) for the Financial Year (FY) 2025-26 on the GST Portal. Exporters and suppliers to Special Economic Zones (SEZ) are required to renew their LUTs annually, as the existing LUT for FY 2024-25 remains valid only until March 31, 2025. It is mandatory to submit the LUT for FY 2025-26 by March 31, 2025, or before initiating any export or SEZ supply in FY 2025-26, whichever comes first.

To file the LUT, follow these steps on the GST Portal: Dashboard > Services > User Services > Furnish Letter of Undertaking > Select Financial Year and apply.

What is an LUT?

A Letter of Undertaking (LUT) is a declaration submitted by exporters and SEZ suppliers under the Goods and Services Tax (GST) regime in India. By filing an LUT, businesses commit to exporting their goods or services without levying Goods and Services Tax (GST) on them. Additionally, they agree to ensure that the revenue generated from these exports is remitted in convertible foreign exchange within a specified period, typically three months. This commitment is fulfilled by submitting the straightforward online form, GST RFD-11, available on the GST Portal. 

Why Filing an LUT is Crucial?

Furnishing a valid Letter of Undertaking (LUT) is essential for businesses aiming to export goods or services and supply to Special Economic Zones (SEZs) without incurring the upfront payment of Integrated Goods and Services Tax (IGST). Without an LUT, taxpayers are obligated to either:

• Pay IGST Upfront and Claim a Refund Later: Businesses must remit IGST at the time of export and subsequently apply for a refund using Input Tax Credit (ITC) or receive the refund in cash. This process can be time-consuming and may impact cash flow.
• Provide an Export Bond: Alternatively, taxpayers can furnish an export bond, which involves additional compliance efforts and administrative responsibilities. Managing export bonds can increase operational complexities and divert resources from core business activities.

Who Should File an LUT?

• Exporters: Businesses engaged in exporting goods or services outside India.
• Suppliers to SEZs: Entities supplying goods or services to operations within Special Economic Zones.

Eligibility Criteria to File  LUT

Any GST-registered person who opts to supply goods or services for export or to SEZs without paying IGST must furnish an LUT. However, eligibility is contingent upon certain conditions:

• Registration Under GST: The individual or entity must possess a valid GST registration to be eligible for furnishing an LUT.
• Zero-Rated Supplies: The LUT is specifically applicable to zero-rated supplies, meaning transactions that are exempt from GST under specific provisions.
• Compliance History: The applicant must not have been prosecuted for tax evasion for an amount of Rs 2.5 Crore or above under the Central Goods and Services Tax (CGST) Act, Integrated Goods and Services Tax (IGST) Act, or any existing laws.
• No Pending Refund Claims: Entities with outstanding refund claims must resolve them before furnishing an LUT.

Who is Not Eligible to File LUT?

• Entities with Legal Proceedings: Businesses that have been prosecuted for tax evasion exceeding Rs 2.5 Crore under relevant GST laws.
• Non-Registered Entities: Individuals or businesses without valid GST registration.

When to Apply/File a Letter of Undertaking (LUT)

A Letter of Undertaking (LUT) must be filed and submitted online prior to exporting goods or services to a country outside India or to Special Economic Zones (SEZs).

Validity Period of Letter of Undertaking (LUT)

A Letter of Undertaking (LUT) is valid for one financial year commencing from the date it is submitted on the GST Portal. For instance, the existing LUT for the Financial Year 2024-25 remains effective only until March 31, 2025. Exporters and suppliers to Special Economic Zones (SEZs) must renew their LUT annually to continue benefiting from zero-rated supplies without the need to pay Integrated Goods and Services Tax (IGST) upfront.

Form GST RFD-11 For Filings LUT

All registered taxpayers engaged in zero-rated supplies of goods or services are required to furnish a Letter of Undertaking (LUT) by submitting Form GST RFD-11 on the GST Portal before initiating such supplies. The deadline to file Form GST RFD-11 (LUT) for the Financial Year 2025-26 is March 31, 2025.

What is to be filled in LUT?

When submitting a Letter of Undertaking (LUT) on the GST Portal, certain essential details must be accurately provided to ensure a smooth and compliant filing process.

• Select the Financial Year: Choose the specific financial year for which the LUT is being filed.
• Provide Witness Details: Enter the name, address, and occupation information of two independent and reliable witnesses. These witnesses should be trustworthy individuals who can verify the declarations made in the LUT.
• Complete Self-Declaration: Carefully review and select all relevant self-declaration points. This step involves affirming the taxpayer's commitment to comply with GST regulations and the conditions stipulated in the LUT.

How to Furnish LUT for FY 2025-26 on the GST Portal?

Ensuring timely filing of your LUT is crucial for uninterrupted export operations and compliance with GST regulations. Follow the steps below to furnish your LUT seamlessly:

Step 1: Log In to the GST Portal

• Open your preferred web browser. Navigate to the official GST Portal. 
• Click on the "Login" button located at the top-right corner of the homepage. Input your GST Identification Number (GSTIN) and password in the respective fields. Click "Sign In" to proceed.
• Complete Authentication: If prompted, enter the One-Time Password (OTP) sent to your registered mobile number or email to complete the login process.

Step 2: Navigate to the LUT Filing Section

• Upon successful login, you will be directed to your account's main Dashboard. In the top navigation bar, click on the "SERVICES" tab to open the dropdown menu.
• From the dropdown, select "User Services" to access services specific to your account. Choose Furnish Letter of Undertaking:
• Under the User Services section, click on "Furnish Letter of Undertaking (LUT)" to initiate the LUT filing process.

Step 3: Select the Financial Year

• Choose Financial Year: In the LUT submission form, locate the "LUT Applied for Financial Year" dropdown menu.
• Select "Financial Year 2025-26" from the available options (e.g., 2025-26).
• Upload Previous LUT (If Applicable): If you have furnished a LUT manually for any of the previous periods, you must upload the same.
• Click on the "Choose File" option within the same window. Ensure the Following:

• Only PDF or JPEG file formats are allowed.
• The maximum file size for upload is 2 MB.

Step 4: Fill in the Application Details

• Complete the LUT Form (GST RFD-11): Fill out all the necessary details in the Letter of Undertaking Form (GST RFD-11) that appears on the screen.
• Self-Declaration: Click on each of the three declaration checkboxes to affirm your commitments.
• Export Commitment: Undertake to complete the export of goods/services within three months from the date of issue of the export invoice or any further period allowed by the Commissioner, if applicable.
• Compliance with GST Law: Agree to abide by all GST laws concerning exports.
• IGST Payment Obligation: Commit to paying IGST along with interest at the rate of 18% per annum for the period from the date of issue of the export invoice up to the date of payment of IGST in case of failure to export.
• Provide Independent Witnesses Information: Enter the Name, Occupation, and Address of two independent witnesses in the designated red-highlighted boxes.

Important Note: The witnesses declared in the LUT must be the same as those declared on the running Bond/Bank Guarantee.

Step 5: Review and Preview the Application

• Enter Place of Filing: Specify the Place of Filing as required.
• Save the Application: Click on the "SAVE" button to save your progress.
• Preview the Application: Click on the "PREVIEW" button to verify the correctness and completeness of the form before submission.

Important: Once the form is signed and submitted, revisions are not possible

Step 6: Sign and Submit the Form

You have two options to sign and file the LUT application:

Submit with Digital Signature Certificate (DSC):

 Applicable for Companies and Limited Liability Partnerships (LLPs) only.

• Click on "SIGN AND FILE WITH DSC".
• A warning message box will appear; click "PROCEED".
• The system will generate a unique Application Reference Number (ARN).

Submit with Electronic Verification Code (EVC):

Applicable for Sole Proprietors and other entities not using DSC.

• Click on "SIGN AND FILE WITH EVC".
• The system will trigger an OTP to the registered mobile phone number and email address of the authorized signatory.
• Enter the OTP in the pop-up to sign the application.
• A warning message box for submission will appear; click "PROCEED".
• The system will generate a unique Application Reference Number (ARN).

Note: Companies and LLPs must file using a DSC and cannot use the EVC method.

Step 7: Confirmation and Acknowledgment

• Receive Confirmation: A confirmation message will appear on the screen.
• The GST Portal will send the Application Reference Number (ARN) to your registered email and mobile number via email and SMS.
• Download Acknowledgment: Click on the "DOWNLOAD" button to download the acknowledgment receipt.
• Additional Access: You can also view previously furnished LUTs by navigating to:

Dashboard > SERVICES > User Services > View my Submitted LUTs > Select the relevant period > Click "VIEW" next to the specific LUT to see the details.

Key Reminders 

• Annual Renewal: Ensure that you renew your LUT every financial year to maintain its validity.
• Deadline: The LUT for FY 2025-26 must be filed by March 31, 2025, or before making any export or SEZ supply in that financial year, whichever comes first.
• File Format and Size: Only PDF or JPEG files are accepted with a maximum size of 2 MB.
• Witness Information: Accurately provide the details of two independent witnesses as required.
• Include ARN on Invoices: Mention the generated ARN on all relevant export and SEZ invoices to validate the exemption from IGST.
• Maintain Documentation: Keep copies of all submitted documents and acknowledgement receipts for future reference and compliance audits.

Take Action Now with IndiaFilings for Your LUT Filing!

Don’t let the deadline for furnishing your Letter of Undertaking (LUT) pass unnoticed. IndiaFilings is here to simplify the LUT filing process for the Financial Year (FY) 2025-26, ensuring that your exports and SEZ supplies continue without interruption. Our team of GST experts will guide you through every step, from preparing and submitting Form GST RFD-11 to ensuring all compliance requirements are met seamlessly.

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