GST LUT Filing: Don’t Miss the 31st March 2026 Deadline

 Introduction

Exports are the backbone of India’s trade economy, and the Goods and Services Tax (GST) framework has streamlined compliance for   exporters. One of the most critical enablers in this system is the Letter of Undertaking (LUT). By furnishing a LUT, exporters can supply   goods or services without paying Integrated GST (IGST) upfront, thereby avoiding cash flow blockages and refund delays.

With the financial year 2026–27 approaching, exporters must remember that the deadline to furnish LUT for FY 2026–27 is 31st March   2026. Missing this deadline means exporters will need to pay IGST on exports and later claim refunds; a cumbersome process that can tie up   working capital.

This blog answers the most frequently asked questions (FAQs) about LUT, helping businesses stay compliant and avoid last-minute hassles.

1.What is a LUT under GST?

A Letter of Undertaking (LUT) is a declaration filed online by exporters under GST. It allows them to export goods or services without  paying IGST at the time of supply. Instead of paying tax upfront and claiming refunds later, exporters can directly make zero-rated supplies.

This mechanism simplifies compliance and ensures liquidity for businesses engaged in international trade.

A Letter of Undertaking (LUT) is a declaration filed online by exporters under GST. It allows them to export goods or services without   paying IGST at the time of supply. Instead of paying tax upfront and claiming refunds later, exporters can directly make zero-rated supplies.

This mechanism simplifies compliance and ensures liquidity for businesses engaged in international trade.

 2. Who can furnish a LUT?

• All registered taxpayers under GST who intend to export goods or services or supply to Special Economic Zones (SEZs) without payment of IGST.
• Exceptions: Taxpayers who have been prosecuted for tax evasion exceeding ₹2.5 Crores under the CGST Act/IGST Act/Existing law are not eligible to furnish LUT. They must instead furnish a bond with a bank guarantee.

 3. What is the validity of a LUT?

• A LUT is valid for one financial year.
• Exporters must renew it annually before the start of the new financial year.
  👉 For FY 2026–27, the LUT must be furnished by 31st March 2026.

 4. How can LUT be furnished online?

The process is entirely digital via the GST portal:

1. Log in to the GST portal.
2. Navigate to Services → User Services → Furnish LUT.
3. Fill in Form GST RFD-11 with export details.
4. Upload the declaration and authorized signatory details.
5. Submit using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Once submitted, the LUT is generally auto-approved unless there are eligibility concerns.

 5. What documents are required for LUT filing?

• Form GST RFD-11 (available on the GST portal).
• Self-declaration confirming no prosecution for tax evasion above ₹250 lakh in the last five years.
• Details of authorized signatory.
• Witness information (if applicable).

 6. What happens if LUT is not furnished?

If an exporter fails to furnish LUT before the deadline:

• They must pay IGST on exports.
• Later, they can claim refunds, but this process delays liquidity and blocks working capital.
• Refund claims also involve additional compliance and scrutiny, which can be avoided by timely LUT filing.

 7. Can LUT be rejected?

Yes, LUT can be rejected if:

• The exporter has been prosecuted for tax evasion exceeding ₹250 lakh in the past five years.
• The declaration contains incorrect or misleading information.

In most cases, however, LUT is auto-approved upon submission.

 8. Is LUT required for deemed exports?

No. LUT applies only to zero-rated supplies such as exports and supplies to SEZs.
Deemed exports (like supplies to EOUs or specified projects) follow different refund provisions and do not require LUT.

 9. Can LUT be amended after submission?

No. Once filed, LUT cannot be edited.
If errors occur, exporters must furnish a fresh LUT with correct details.

 10. What are the benefits of furnishing LUT?

• No upfront IGST payment on exports.
• Improved cash flow and liquidity.
• Simplified compliance compared to bonds with bank guarantees.
• Faster processing of export transactions.

 11. What is the penalty for non-compliance?

While there is no direct penalty for not furnishing LUT, the consequence is financial:

• Exporters must pay IGST upfront.
• Refund claims may take weeks or months, impacting working capital.
• Non-compliance can also attract scrutiny during audits.

 12. How does LUT impact SEZ supplies?

Supplies to SEZs are treated as zero-rated under GST. Exporters can furnish LUT to make such supplies without paying IGST. This ensures   smooth transactions with SEZ units and avoids refund delays.

 13. Is LUT applicable for services exports?

Yes. LUT is equally applicable for exporters of services. Whether you are an IT company exporting software services or a consultancy firm  serving overseas clients, furnishing LUT allows you to avoid IGST payment on invoices.

 14. What is the difference between LUT and Bond?

• LUT: Available to all exporters except those prosecuted for major tax evasion. Requires only a declaration.
• Bond: Mandatory for exporters not eligible for LUT. Requires furnishing a bond with a bank guarantee, which increases compliance cost and effort.

 15. What is the timeline for LUT approval?

• LUT is generally auto-approved upon submission.
• Exporters can download the acknowledgment from the GST portal immediately.
• In rare cases, if scrutiny is required, approval may take a few days.

 16. What should exporters keep in mind for FY 2026–27?

• The deadline is 31st March 2026.
• Furnish LUT well in advance to avoid last-minute portal issues.
• Keep documentation ready and ensure authorized signatory details are updated.
• Verify acknowledgment after submission to confirm approval.

 Conclusion

The Letter of Undertaking (LUT) is a vital compliance requirement for exporters under GST. It ensures that businesses can export goods and services without paying IGST upfront, thereby safeguarding liquidity and simplifying compliance.

For FY 2026–27, the deadline to furnish LUT is 31st March 2026. Exporters should act early, file online through the GST portal, and avoid the pitfalls of refund delays. By staying proactive, businesses can ensure smooth operations, uninterrupted exports, and better financial management.

In short, furnishing LUT is not just a compliance requirement; it is a strategic move to protect your working capital and streamline your export journey.

 

Blog By : Mittal & Co.