LUT (Letter of Undertaking) for GST

Annual GST filing that allows Indian exporters to ship without paying IGST upfront (and claiming refund later). Standard for FBA sellers.

Definition

LUT — Letter of Undertaking — is an annual filing on the GST portal by an Indian exporter, undertaking to fulfil all export conditions and realize proceeds in accordance with FEMA. Filing an LUT allows the exporter to make zero-rated exports without paying IGST upfront (the alternative is paying IGST and claiming refund, which locks up working capital).

Who can file

• Any GST-registered exporter with no prosecution history under GST law with tax evasion above ₹2.5 crore
• Filed on gst.gov.in under Services → User Services → Furnish Letter of Undertaking (LUT)
• Valid for one financial year — must be renewed every April

What happens if you forget

• You'll be forced to pay IGST on every export invoice until the LUT is filed
• Refund claims for the IGST paid become a separate paperwork exercise (weeks to months of turnaround)
• No penalty per se, but the working-capital drag is significant

For Indian FBA exporters

Most Indian FBA sellers file an LUT every April as part of their compliance calendar. Miss it and every Amazon shipment to your FBA warehouse triggers IGST payment — money that then sits with the government until your refund is processed.

Set a calendar reminder for 1st April. The filing takes 5 minutes on the GST portal. There is no reason to skip it.

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