LUT Declaration for Exports
The undertaking exporters give to ship without paying tax up front.
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| GSTIN | [GSTIN] |
| Financial year | [financial year] |
We, [legal name], holding the GSTIN shown above, undertake as follows in respect of exports made without payment of integrated tax during the financial year [financial year]:
1.To export the goods or services within the period allowed after the date of the invoice, or such further period as may be permitted.
2.To observe all the conditions applicable to exports made under a letter of undertaking.
3.To pay the tax due, together with interest at the applicable rate from the date of the invoice until payment, should the goods or services not be exported within the period allowed.
4.That the undertaking given here is understood to be binding, and that it may be withdrawn by the authorities if any of the above is not observed.
Witnesses
| Name | Occupation | Address |
|---|---|---|
| [add one witness per line] |
| Place | [place] |
| Date | 14 October 2026 |
What is an LUT Declaration for Exports?
A Letter of Undertaking is the declaration an exporter files so that goods or services can be shipped without paying integrated tax up front and reclaiming it later. It matters for cash flow: without a valid LUT on file, the alternative is paying tax on every export invoice and waiting for a refund. It is filed for a financial year, and an expired or missing LUT quietly turns zero-rated supplies into taxed ones.
Indian exporters use it under GST: manufacturers and merchant exporters shipping goods, IT and consultancy firms billing overseas clients, and suppliers making zero-rated supplies to a Special Economic Zone unit or developer. Finance and compliance teams file it at the start of each financial year on the GST portal, and the acknowledgement reference is then quoted on export invoices and shipping documents. Customs brokers, freight forwarders and the bank handling export documentation will ask to see it, so it typically ends up circulated well beyond the tax team.
This is an Indian GST instrument, and the eligibility conditions, the form, the annual filing cycle and the consequences of non-realisation of export proceeds are set by the CGST Act and rules and by circulars issued under them. These change: conditions on prior prosecution, the bond-versus-LUT threshold and procedural details have all been revised more than once. Confirm the current position on the GST portal or with your tax adviser before filing. Exporters in the UK, EU, US, Canada and Australia operate under entirely different zero-rating or export-exemption regimes, and this document does not apply to them.
An LUT covers the tax treatment of exports; it does not settle the rest. Foreign exchange realisation timelines, filing of shipping bills, e-invoicing and the underlying export contract all run separately. It does not exempt you from proving that supplies actually qualified as exports or as SEZ supplies, and if proceeds are not realised within the prescribed period or the conditions are broken, the undertaking is what allows the department to recover the tax with interest. It is also not a refund claim — input tax credit refunds are applied for on their own footing.
What to put in an LUT Declaration for Exports
These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.
| Field | What goes in it |
|---|---|
| Company name | For example: Barton Technologies Inc. |
| Registered office | For example: Suite 200, 1428 Kinnear Road, Columbus, OH 43212 |
| GSTIN | For example: 37AABCU9603R1ZX |
| Financial year | For example: 2026-27 |
| Signatory name optional | For example: K. Srinivasa Rao |
| Signatory designation optional | For example: Honorary Secretary |
| Witnesses | One per line: Name | Occupation | Address |
How to write an LUT Declaration for Exports
Confirm eligibility before you file
Check that the entity is registered under GST, is making or intends to make zero-rated supplies, and meets the current conditions for furnishing an LUT rather than a bond. Rules on prior prosecution and on who must give a bond with bank guarantee have been amended since GST began, so verify against the current provisions or with your adviser rather than relying on what applied when you last filed.
File for the financial year on the portal
The LUT is furnished electronically for a financial year and applies from filing. File early in the year, before the first export invoice, rather than after — an export made while no valid LUT is in force does not retrospectively become covered by one filed later. Save the acknowledgement and the reference number as soon as it is generated.
Get the required witnesses and signatory right
The undertaking is given by an authorised signatory of the registered person, with independent witnesses whose names, addresses and occupations are stated. Use people who can actually be contacted, not colleagues who will have left. Check that the authorisation on record on the portal matches the person signing, since a mismatch between the board authorisation and the digital signature is a common reason for a filing being questioned.
Quote the LUT reference on export documents
Put the acknowledgement or ARN and a clear statement that the supply is made under an LUT without payment of integrated tax on every export invoice, and give the reference to your customs broker and bank. Buyers, SEZ units and banks routinely ask for it. An invoice that omits the declaration creates avoidable questions at assessment and at the port.
Diarise renewal and monitor proceeds
Set a reminder before the start of each financial year, because the LUT does not roll forward automatically and exports made after it lapses are exposed. Track realisation of export proceeds against the prescribed timeline and keep the bank documentation, since failure to realise within the period can lead the department to recover the tax with interest under the undertaking you gave.
Common mistakes
- Letting the LUT lapse at the financial year end and continuing to invoice exports without tax, leaving the supplies unsupported for that gap.
- Filing after the first export of the year, on the assumption that it applies retrospectively to invoices already raised.
- Omitting the LUT reference and the without payment of integrated tax declaration from export invoices, which invites queries from customs, the bank and the assessing officer.
- Signing through a person whose authorisation is not reflected on the portal, so the filing is challenged on a procedural point rather than the substance.
- Ignoring the realisation timeline for export proceeds, then facing recovery of tax with interest under the very undertaking that was given.
Frequently asked questions
Who is eligible to file an LUT under GST?
Broadly, a registered person making zero-rated supplies — exports of goods or services, or supplies to an SEZ unit or developer — who satisfies the conditions currently prescribed for furnishing an LUT rather than a bond. Those conditions, including provisions about prior prosecution, have been amended since GST was introduced, so confirm the current rule on the GST portal or with your tax adviser before filing.
How long is an LUT valid?
It is furnished for a financial year and does not renew itself. File a fresh LUT at the start of each year, ideally before the first export invoice, and keep the acknowledgement. Exports made during a period when no valid LUT is in force are not covered by one filed afterwards, which is why the renewal reminder matters more than the filing itself.
What is the difference between an LUT and a bond?
Both allow export without paying integrated tax up front, but a bond is the fallback where an exporter does not meet the conditions for an LUT, and it generally has to be backed by a bank guarantee. The thresholds and eligibility conditions have been revised over time, so check the current provisions to see which applies to your entity before assuming you can use an LUT.
Can I export without paying IGST if I have not filed an LUT?
Not on that basis. Without a valid LUT or bond, the route is to pay integrated tax on the export and claim a refund afterwards, which ties up cash. If you have already exported in a gap period, take advice on how to regularise it rather than back-dating anything, and file the LUT immediately so the remainder of the year is covered.
Do I need to mention the LUT on my export invoice?
Yes, and it is standard practice to state that the supply is made under an LUT without payment of integrated tax and to quote the acknowledgement reference. Your customs broker, your bank handling the export documentation and the buyer's compliance team will all look for it, and an invoice missing the declaration is a common cause of queries during assessment.
This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.