How to file LUT for export of services | GST portal guide 2025

You export services from India as a freelancer, developer, or consultant. You've probably heard about LUT in GST. This guide walks you through everything you need to know. We cover the complete filing process with step-by-step instructions.

But first, let's take a look at what LUT means in GST for the export of services

LUT stands for Letter of Undertaking. Think of it as a formal promise to GST authorities. It allows you to export services without paying the Integrated Goods and Services Tax (IGST) upfront.

Here's the normal export process without LUT:

• You pay 18% IGST when creating the invoice
• You wait to receive payment from your overseas client
• You file for a GST refund through a lengthy process
• You wait 30-60 days to get your money back

This creates a massive cash flow problem. Small businesses and freelancers struggle the most.

LUT eliminates this entirely.

How LUT works for service exporters

You make three key promises to GST authorities when filing LUT:

1. You will export services within 3 months of the invoice date
2. You will comply with all GST regulations for export documentation
3. You will pay IGST + 18% interest if you fail to export the service

You get a majorbenefit in return. Invoice your clients without collecting IGST. Receive full payment. Avoid the refund hassle completely.

Example: Priya, a freelance developer in Mumbai, invoices her US client $5,000 for app development. Without LUT, she would pay ₹74,000 as IGST upfront (18% of ₹4,10,000). She would then wait 2 months for a refund. With LUT, she invoices $5,000 with zero IGST. Her client pays the full amount. She receives ₹4,10,000 directly.

Why exports qualify as "zero-rated" under GST

GST law treats exports as "zero-rated supplies." This means they attract 0% tax. Exporters get two options to claim this benefit:

Option 1: Pay IGST and claim refund - Time-consuming, paperwork-heavy
Option 2: File LUT - Quick, digital, no cash flow impact

Most service exporters choose LUT. The choice seems obvious.

Who can file an LUT for the export of services

Check these eligibility criteria before you file LUT:

You qualify if you meet these conditions:

Hold a valid GST registration with an active GSTIN • Export services to clients outside India or to SEZ units • Have zero outstanding GST payment dues • File GST returns regularly and on time • Maintain a clean compliance history

You don't qualify if any of these apply:

Face prosecution for tax evasion exceeding ₹2.5 crore under GST or previous tax laws • Have pending GST payments or arrears • Hold a suspended or cancelled GST registration • Show a history of GST return non-compliance

Important: You can use the Bond route (Form GST RFD-11A) if LUT eligibility fails due to prosecution history. This requires a bank guarantee but serves the same purpose.

Documents you need for LUT filing

Good news: You don't upload any documents when filing LUT on the GST portal. The process runs entirely online.

Keep these documents ready for reference:

For first-time LUT registration:

GST Registration Certificate (verifies your GSTIN) • PAN Card of the business or proprietor • IEC (Import Export Code) certificate • Digital Signature Certificate (DSC) or EVC (e-Verification Code) access • Bank account details linked to your GSTIN • Authorized signatory details (name, designation, address) • Two witness details (name, occupation, address)

For LUT renewal in subsequent years:

Previous year's LUT copy (optional - you can upload but it's not mandatory)

Step-by-step: how to file LUT on GST portal

Follow this exact process to file your LUT for export of services. The complete process takes 10-15 minutes.

Step 1: Log in to the GST portal

Visit the Goods & Services Tax website

Enter your Username (GSTIN or email/mobile). Type your Password. Complete the Captcha. Click LOGIN.

The homepage displays your business name at the top after login.

Step 2: Navigate to LUT filing section

Click the "Services" tab in the top menu. Select "User Services" from the dropdown. Click "Furnish Letter of Undertaking (LUT)."

Pro tip: Bookmark this page. You'll need it for annual renewals.

Step 3: Select your financial year

The "Furnish LUT" page opens. Find the "LUT Applied for Financial Year" dropdown.

Select the current financial year:
• Choose "2024-25" if filing between April 2024 - March 2025
• Choose "2025-26" if filing after April 1, 2025

Important: File LUT before March 31st for the year you want coverage. Many exporters file in early April. This ensures coverage for the entire year.

Step 4: Upload previous LUT (optional step)

Skip this step if you're filing for the first time.

For renewals, you can upload last year's LUT:

Click "Choose File." Select your previous LUT acknowledgement (PDF or JPEG, max 2MB). Click "Upload."

The GST portal stores your previous LUT records. This step remains optional.

Step 5: Fill the declaration form (GST RFD-11)

This forms the core of your LUT application. Form GST RFD-11 shows three declaration checkboxes. Tick all three boxes:

Declaration 1: Export timeline

Check this box: "I/We hereby undertake to export the goods or services, or both, within three months from the date of issue of invoice for such supply of goods or services, or both."

Translation: You promise to complete service delivery and receive payment within 3 months of invoicing.

Declaration 2: GST compliance

Check this box: "I/We hereby undertake to comply with all provisions of the Central Goods and Services Tax Act, 2017, and the rules made thereunder in respect of such export of goods or services, or both."

Translation: You'll follow all GST rules for exports - proper invoicing, documentation, reporting.

Declaration 3: Payment commitment

Check this box: "I/We hereby undertake to pay the tax due along with the interest, as applicable, in case of non-fulfilment of the above two undertakings."

Translation: You'll pay IGST plus 18% annual interest if you fail to export or don't comply with GST rules.

These create legally binding commitments. Read them carefully.

Step 6: Provide witness details

You need two independent witnesses. Choose from these options:

Business partners • Chartered Accountants • Company directors • Professional associates

Enter for each witness:

Full name (matching their ID proof)

Occupation (example: "Chartered Accountant", "Software Engineer")

Complete address with pin code

Example: Witness 1: Rahul Sharma, Chartered Accountant, 123 MG Road, Bangalore - 560001 Witness 2: Anjali Patel, Business Consultant, 45 Park Street, Mumbai - 400001

Pro tip: Choose witnesses you can reach easily. They confirm your identity, not guarantee your tax compliance.

Step 7: Enter authorised signatory details

Fill in the "Place of Filing LUT" field with your business city (example: "Mumbai").

Enter the authorised signatory's full name:
• Proprietorship: Your name
• Company: Director, Company Secretary, or authorised manager
• LLP: Designated Partner

Add the place where the signatory signs (usually the same as the business location).

Important: The authorised signatory must have DSC registered with the GST portal, or access to EVC on their registered mobile/email.

Step 8: Preview and verify all details

Click "SAVE" to save your form. Click "PREVIEW" to review all details.

Verify carefully:
• Financial year selection matches your needs
• All three declarations show checkmarks
• Witness details appear complete and accurate
• Authorised signatory name displays correctly

Pro tip: Print or save this preview PDF before submitting. Keep it for your records.

Step 9: Sign and submit your application

Choose one of two signing options:

Option A: Sign with DSC (recommended for companies)

Click "SIGN AND FILE WITH DSC." Select your Digital Signature Certificate from the list. Enter your DSC password when prompted.

A warning appears: "Once submitted, the application cannot be withdrawn." Click "PROCEED."

The system automatically generates an ARN (Application Reference Number).

Option B: Sign with EVC (easier for individuals and proprietorships)

Click "SIGN AND FILE WITH EVC." The system sends an OTP to your registered mobile number and email address.

Enter the 6-digit OTP in the field. A warning appears: "Once submitted, the application cannot be withdrawn." Click "PROCEED."

The system generates an ARN automatically.

What happens next:
• A confirmation message displays on screen
• Your ARN appears (format: AA270120251234567)
• SMS and email arrive with the ARN • The acknowledgement becomes available for download

Step 10: Download your acknowledgement

Click "DOWNLOAD" on the confirmation screen. Save the LUT Acknowledgement PDF to your computer. Print a copy. Keep it with your export documentation.

You'll need this acknowledgement for:
• Export invoice documentation
• Bank FIRA/FIRC submissions
• GST audit purposes
• Next year's renewal

LUT approval process: what happens after submission

Your LUT follows this approval timeline after submission:

Automatic approval in 3 working days

Your LUT gets "deemed approved" when:
• The GST department doesn't object within 3 working days
• No notice reaches you

Most applications with a clean compliance history get approved automatically.

If the department raises objections

The department may send a notice asking for:

• Clarification on specific points • Additional documentation

• Explanation of compliance issues.

Respond within the specified timeline (usually 7 days).

How to check your LUT status

Log in to the GST portal. Navigate to Services > User Services > Track Application Status. Enter your ARN. Check the status: "Submitted", "Under Process", or "Approved."

How to renew LUT for the next financial year

LUT covers one financial year only (April 1 to March 31). Renew it annually to continue exporting without IGST payment.

When to renew your LUT

Best practice: File renewal in early April for the new financial year. Don't wait until the deadline.

Deadline: Complete renewal before March 31st of the financial year needing coverage.

Renewal process steps

The renewal process mirrors first-time filing:

1. Log in to GST portal
2. Go to Services > User Services > Furnish LUT
3. Select the new financial year from dropdown (example: "2025-26")
4. Upload previous year's LUT acknowledgment (optional)
5. Fill the same three declarations
6. Provide witness details (can use the same witnesses)
7. Enter authorized signatory details
8. Sign and submit with DSC or EVC

Pro tip: Save all your details in a document. This makes renewal take just 5 minutes each year.

Common mistakes when filing LUT and how to fix them

Mistake 1: Filing LUT after exporting services

The problem: Some exporters invoice clients first, then remember LUT.

Why this fails: File LUT before you export services. Already exported without LUT means you must pay IGST.

The fix: File LUT at the financial year start (April) to cover all exports for the year.

Example: Ramesh forgot to file LUT in April. He invoiced his UK client £3,000 in May. He must now pay ₹45,900 IGST (18% of ₹2,55,000) and file for refund later.

Mistake 2: Not renewing LUT annually

The problem: Assuming last year's LUT continues automatically.

Why this fails: LUT expires on March 31st. Exporting in the new financial year without renewal means GST authorities can demand IGST plus interest.

The fix: Set a calendar reminder for early April every year. Renew before you start exporting.

Mistake 3: Selecting wrong financial year

The problem: Selecting "2024-25" when filing in April 2025.

Why this fails: You need LUT for the current financial year (2025-26).

The fix: Always select the financial year in which you plan to export.

Mistake 4: Providing incomplete witness information

The problem: Just providing names without occupation/address, or using fictional witnesses.

Why this fails: Authorities can verify witness details. Incomplete or false information leads to LUT rejection.

The fix: Provide accurate, complete details of real witnesses who can be contacted.

Mistake 5: Not keeping LUT acknowledgment

The problem: Deleting the acknowledgment email or losing the PDF.

Why this fails: You need this for export documentation, audits, and next year's renewal.

The fix: Save the acknowledgment PDF in cloud storage. Print a hard copy for physical files.

What to do if you forgot to file LUT before exporting

This situation happens often. Here's what you need to know:

Can you file LUT retrospectively?

Yes, in certain cases. The Central Board of Indirect Taxes and Customs (CBIC) allows ex post facto LUT filing (filing after export) if:

You have a genuine reason for the delay

You apply for condonation of the delay

You provide proper justification to the GST officer

The process for late filing

File your LUT immediately on the GST portal. Write an application to the jurisdictional GST officer. Explain:

Why you couldn't file on time • The dates of exports you made • Your request for condonation of delay

Attach supporting documents (export invoices, client communications).

Possible outcomes

Best case: Officer approves ex post facto LUT with no penalties. Worst case: You pay IGST on past exports plus 18% interest from invoice date.

Prevention beats cure: Always file LUT proactively at the financial year start.

LUT vs bond: which option suits you better

Choose a Bond if you don't qualify for LUT (due to prosecution history or compliance issues).

Recommendation: Choose LUT over Bond if you qualify. LUT costs nothing, takes less time, and creates no hassles.

LUT for different types of service exports

LUT applies to all service exports. Here's how different professionals use it:

For freelancers and consultants

• Software development
• Graphic design
• Content writing
• Digital marketing
• Consulting services
• Virtual assistance

Invoice requirement: Your invoice should clearly state:
• "Export of service"
• Client's overseas address
• Payment in foreign currency or INR equivalent
• "Supply meant for export under LUT" or "Zero-rated supply under LUT"

Example: Neha, a freelance content writer in Pune, charges her Australian client AUD 2,000 for a project. Her invoice shows: "Export of service under LUT ARN: AA123456789. Zero-rated supply as per Section 16 of IGST Act."

For IT and software companies

Services covered:
• Software development
• IT support services
• SaaS subscriptions
• Cloud services
• Maintenance contracts

Additional requirement: Maintain proper documentation showing:
• Service delivery outside India
• Consumption of services by overseas clients
• STPI/SEZ registrations (if applicable)

For professional services

Services covered:
• Legal services
• CA/audit services
• Architectural services
• Engineering consultancy
• Management consulting

Key point: Ensure your services meet "place of supply" criteria for export. The service must be used or consumed outside India.

Example: A Bangalore-based architect designs a hotel for a Dubai client. The design is used in Dubai. This qualifies as an export of services. The architect files LUT and invoices without IGST.

How to use LUT in your export documentation

Use your approved LUT in these ways:

1. On your export invoice

Add this statement: "Supply covered under LUT ARN: [Your ARN Number]" "Supply meant for export on payment of Integrated Tax (Zero-Rated Supply)"

2. In your GST returns

When filing GSTR-1: • Report exports in Table 6A (Exports with payment - select "Without payment of tax") • Mention your LUT ARN in the remarks

3. For FIRC/FIRA documentation

When submitting export proof to your bank:

• Attach copy of LUT acknowledgement

• Show invoice raised under LUT

• Provide evidence of service delivery

How Winvesta helps service exporters after LUT filing

Filing LUT solves the GST challenge. But you still face the question of receiving payments from overseas clients efficiently.

Winvesta's Global Collections Account (GCA) becomes valuable here.

The export payment challenge

After filing the LUT and invoicing your client, you face:

• High SWIFT transfer fees (₹500-2,000 per transaction)

• Poor exchange rates with 2-5% markups

• Delayed payments (3-7 days for funds to reach your account)

• Complicated reconciliation for FIRA/FIRC

How Winvesta's GCA solves this

Winvesta provides dedicated virtual accounts in multiple currencies (USD, EUR, GBP). Your clients can pay these accounts directly using local banking details:

Lower costs: No SWIFT fees, transparent FX rates
Faster payments: Funds reach your Indian account in 1 business day
Easy FIRA/FIRC: Automatic documentation for export compliance
Better cash flow: Get paid faster, no waiting for international wires
Professional appearance: Give clients local bank details instead of Indian accounts

Example: Your US client pays $5,000 to your Winvesta USD account (like a US domestic transfer). Winvesta converts at live rates. ₹4,18,000 gets credited to your Indian bank account. You receive automatic FIRA documentation for GST compliance. Total time: 1 business day. Total cost: Transparent FX conversion, no hidden fees.