GST LUT Eligibility, Documents, Filing Steps, and Validity

To furnish an LUT, you generally need to be registered under GST and intend to make qualifying exports of goods or services, or eligible supplies to an SEZ, without payment of IGST. Eligibility is subject to the restrictions set out under the applicable GST rules.

A person prosecuted for tax evasion involving an amount of Rs. 2.5 crore or more may not be eligible to furnish an LUT and may need to provide a bond instead. Verify the current legal threshold and its application to your circumstances before relying on it.

For a broader view of related obligations, explore audit under GST.

• GST registration certificate: Keep a copy of your GST registration details available.
• Authorised signatory identification: Keep the identity details required for the person signing the application.
• Authorised signatory details: Have the authorised signatory’s Permanent Account Number (PAN) and, where you are filing for a business entity, the authorisation that permits the person to act on its behalf.
• Previous LUT, if applicable: Keep a copy of the previously accepted LUT for reference.

For step-by-step guidance on accessing your registration details, refer to GST certificate download. Before applying, check your business loan eligibility if you are also planning funding for export operations; the loan application requirements are separate from the documents needed for an LUT. 

The relevant GST jurisdiction is generally linked to the taxpayer’s registration and principal place of business. However, the LUT is furnished online through the GST portal rather than by routinely submitting it to a local office in person. Use the portal’s current workflow and follow any instructions shown for your registration.

For estimating tax on relevant transactions, you can also use a GST calculator, while confirming the correct tax treatment under the applicable rules.

An LUT generally remains valid for the financial year in which it is furnished. If you want to continue making eligible exports without payment of IGST in the next financial year, you should furnish a fresh LUT.

The export and payment conditions attached to an LUT also matter. Goods should generally be exported within three months from the invoice date and that payment for exported services should generally be received within one year from the date of the LUT, subject to the applicable provisions and any permitted extensions. Where conditions are not met, tax and interest may become payable, and the LUT facility may be affected.

Because statutory timelines, extensions, and consequences can depend on the transaction and current rules, confirm the relevant time limits before acting.

• Log in to the GST portal using your taxpayer credentials.
• Navigate to the LUT filing option for the relevant financial year and open the prescribed form.
• Enter the required details, complete the declarations, and review the information before submission.
• Sign and submit the application using the verification method available to your taxpayer type, such as a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC), as applicable.
• After submission, save the acknowledgement and the Application Reference Number (ARN) for your records.

Check that the authorised signatory is correct and that the information matches your GST registration. Keep the acknowledgement with your export records so your team can retrieve it if questions arise.

The application should be signed by the primary authorised signatory or another person authorised to sign on behalf of the taxpayer, such as a proprietor, working partner, managing director, or another duly authorised person. The accepted signing method depends on the type of taxpayer and the portal requirements; companies and limited liability partnerships may be required to use a DSC.

After submission, retain the ARN and download the acknowledgement. These records help you demonstrate that the LUT was furnished and provide a reference if you need to follow up on the application.

The portal may display different statuses as an application progresses. Some examples are:

• Submitted: the application has been filed.
• Pending Clarification: a clarification has been requested.
• Pending Order: a response has been submitted, or the response period has passed, and an order is awaited.
• Approved: the undertaking has been accepted.
• Rejected: the undertaking has not been accepted.
• Deemed Approved: the application is treated as approved under the applicable process when the authority does not act within the prescribed time.
• Expired: the LUT validity period has ended.

There is a three-working-day period for deemed approval. Verify the current portal rules and status definitions before relying on a specific timeline.

• Cash flow: You can avoid paying IGST upfront on qualifying exports, helping preserve funds for payroll, suppliers, production, and other operating costs.
• Simpler refund administration: Using an LUT can avoid the need to pay IGST first and then seek a refund for eligible exports, although other refund or compliance processes may still apply.
• Operational planning: A valid LUT and organised export records can help your finance team plan invoices, filings, and supporting documents.
• International competitiveness: Preserving working capital may help you manage pricing and delivery commitments in overseas markets.

A bond is an alternative for an exporter who cannot furnish an LUT but wants to make eligible exports without payment of IGST, subject to the applicable rules. A bond may require a financial security or bank guarantee and can involve additional documentation. The precise conditions depend on the case, so confirm the requirements before choosing this route.

An eligible exporter can generally furnish an LUT online, while an exporter who does not qualify may need to furnish a bond. The main differences are summarised below.

Do not assume that a single security percentage or processing timeline applies to every bond. Ask a tax professional to confirm the requirements for your export activity.

Furnish an LUT before making the qualifying supplies for which you intend to use the facility, and allow time to resolve any portal issues or requests for clarification. A bond may require additional steps, including execution on the required stamp paper or provision of security. Processing time depends on the application, the documents submitted, and the applicable procedure.

Once an LUT is furnished, save the acknowledgement and check the portal for the relevant status. Avoid relying on a fixed number of working days unless the current portal guidance confirms it for your case.

The LUT application generally records the exporter’s details and the undertaking to comply with the conditions under GST law. Be ready to provide or confirm the following information where requested by the portal:

• Exporter’s name and principal place of business.
• Goods and Services Tax Identification Number (GSTIN).
• The applicable financial year or validity period.
• The required declarations and undertakings under GST law.
• Details and signature of the authorised signatory, along with the date and place where required.
• Witness details if requested by the current form or process.

To apply, log in to the GST portal, open the LUT form for the relevant financial year, complete the declarations, sign using the method applicable to your taxpayer type, and submit it. Download the acknowledgement and retain the ARN with your business records. If the portal requests clarification, respond within the stated time and keep a copy of your response.

For an exporter, avoiding upfront IGST on qualifying supplies can help preserve working capital, but you still need to fund production, shipping, payroll, supplier payments, and other operating expenses. Build your cash-flow forecast around export receipts, GST filing dates, and the annual LUT renewal so that compliance tasks do not disrupt day-to-day operations.

If export orders, production costs, shipping, or delayed customer payments put pressure on your working capital, you may compare external funding with your forecast cash flow and repayment capacity. Bajaj Finance Business Loan offers loan amounts from Rs. 2 lakh to Rs. 80 lakh and repayment tenures from 12 to 96 months, subject to eligibility, approval, and applicable terms. The available options include a Term Loan, Flexi Dropline Loan, and Flexi Hybrid Loan.

Before starting an application, check your pre-approved business loan offer. A loan is optional and should be considered only if the repayment schedule fits your business’s expected cash flow.

• Click the 'Check Loan Offer' button to open the online application form.
• Enter basic details, including Name, PAN, Date of Birth, PIN Code, and Business details, and click 'CONTINUE'.
• Complete banking verification and continue.
• View your offer details, select the loan type — Term Loan, Flexi Dropline Loan, or Flexi Hybrid Loan — and choose the repayment tenure.
• Review the details and submit the business loan application.