Introduction
Letter of Undertaking (LUT) is a crucial compliance requirement for exporters under GST. Filing an Annual LUT Bond allows eligible taxpayers to export goods or services without payment of IGST, ensuring smooth cash flow and compliance with GST laws.
This Saving Mantra guide explains the step-by-step LUT bond annual filing process, eligibility conditions, documents required, validity period, and common mistakes to help exporters remain fully compliant.
What Is LUT Bond Under GST?
A Letter of Undertaking (LUT) is a declaration filed by exporters stating that they will comply with GST laws while exporting goods or services without paying IGST.
LUT is filed annually and is valid for the entire financial year.
Who Is Eligible to File LUT?
You are eligible to file LUT if:
- You export goods or services without payment of IGST
- You supply to SEZ units or developers
- You have not been prosecuted for tax evasion exceeding ₹2.5 crore
- You are a regular GST registered taxpayer
Who Is Not Eligible for LUT?
- Taxpayers prosecuted for serious GST offences
- Businesses with repeated non-compliance
- Taxpayers opting for export without LUT or bond approval
Such taxpayers must file a GST Bond with bank guarantee instead.
Validity of LUT Bond
- Valid for one financial year
- Must be filed every year before making exports
- New LUT required even if previous year LUT was approved
Documents Required for LUT Filing
- GST login credentials
- Valid GSTIN
- Authorized signatory details
- IEC (Import Export Code)
- Previous LUT details (if any)
- Digital Signature (DSC) or EVC access
Step-by-Step Process for Annual LUT Bond Filing
Step 1: Login to GST Portal
Visit https://www.gst.gov.in and log in using your GST credentials.
Step 2: Navigate to LUT Application
Go to:
Services → User Services → Furnish Letter of Undertaking (LUT)
Step 3: Select Financial Year
Choose the relevant financial year for which LUT is being filed.
Step 4: Fill LUT Declaration
Confirm the declaration stating:
- Exports will be completed within prescribed time
- GST laws will be complied with
- Tax liability will be paid if conditions are violated
Step 5: Enter Witness Details
Provide:
- Name and address of two witnesses
- Place of filing
Step 6: Verification & Submission
Submit the application using:
- DSC (mandatory for companies/LLPs)
- EVC (for proprietors/partnerships)
Step 7: LUT Acknowledgement
Once submitted successfully:
- LUT is approved instantly
- ARN is generated
- LUT certificate can be downloaded from the portal
Time Limit for Filing LUT
- Should be filed before making any export
- Recommended to file at the start of the financial year
- Delay may result in IGST payment requirement
Post-LUT Compliance Requirements
After filing LUT, exporters must:
- File GST returns on time (GSTR-1, GSTR-3B)
- Realize export proceeds within allowed time
- Maintain export documentation
- Avoid GST defaults during the year
Failure may result in LUT withdrawal.
Common Mistakes to Avoid
- Not filing LUT at the beginning of the year
- Entering incorrect financial year
- Using expired DSC
- Ignoring pending GST returns
- Proceeding with exports before LUT approval
Benefits of Filing LUT Bond
- Export without IGST payment
- Improved cash flow
- Faster refunds
- Reduced compliance burden
- Smooth international trade operations
Why Choose Saving Mantra for LUT Filing?
- Expert GST compliance team
- Error-free annual LUT filing
- Export advisory support
- DSC & portal handling
- End-to-end GST compliance assistance
Frequently Asked Questions (FAQs)
Is LUT required every year?
Yes, LUT must be filed separately for each financial year.
Is LUT filing online or offline?
LUT filing is completely online through the GST portal.
Is bank guarantee required for LUT?
No, LUT does not require a bank guarantee.
Can LUT be filed after export?
No, LUT should be filed before making exports.
Conclusion
Annual LUT bond filing is a mandatory compliance for exporters under GST to continue exporting without IGST payment. Timely and accurate LUT filing ensures uninterrupted exports, better liquidity, and legal compliance.
Professional handling helps avoid errors, rejections, and unnecessary tax payments.