GST LUT Filing for FY 2026-27: Exporters\u2019 Annual Compliance Checklist<\/p>\n
For exporters of goods and services, filing a Letter of Undertaking (LUT) is one of the most important annual GST compliances. A valid LUT enables eligible exporters to make zero-rated supplies without paying Integrated GST (IGST), helping businesses avoid unnecessary blockage of working capital.<\/p>\n
Since an LUT remains valid only for one financial year, every exporter who wishes to continue exporting without payment of IGST must furnish a fresh LUT for FY 2026-27 before making export supplies in the new financial year.<\/p>\n
This guide explains everything exporters need to know, along with a practical annual compliance checklist.<\/p>\n
What is a Letter of Undertaking (LUT)?<\/p>\n
A Letter of Undertaking (LUT) is a declaration filed in Form GST RFD-11 by eligible registered taxpayers. It allows exports of goods or services, and supplies to Special Economic Zones (SEZs), without payment of IGST.<\/p>\n
Instead of paying IGST first and claiming a refund later, exporters can furnish an LUT and directly export without tax payment, significantly improving cash flow.<\/p>\n
Why is LUT Important?<\/p>\n
Filing an LUT offers several advantages:<\/p>\n
Export without payment of IGST
\n
Better cash flow management
\n
No blockage of working capital
\n
Easier refund of accumulated Input Tax Credit (ITC), where eligible
\n
Reduced compliance burden compared to the IGST refund route
\n
Who Can File LUT?<\/p>\n
Generally, the following taxpayers can furnish an LUT:<\/p>\n
Exporters of goods
\n
Exporters of services
\n
Businesses supplying to SEZ units or SEZ developers
\n
Registered persons making zero-rated supplies<\/p>\n
Eligible taxpayers can file LUT electronically on the GST portal instead of executing a bond, subject to the prescribed conditions under GST law.<\/p>\n
Validity of LUT for FY 2026-27<\/p>\n
An LUT is valid for one financial year only.<\/p>\n
Therefore:<\/p>\n
Financial Year: 2026-27
\n
Validity: Up to 31 March 2027<\/p>\n
A fresh LUT must be filed for every subsequent financial year if exports without payment of IGST are to continue.<\/p>\n
When Should You File LUT?<\/p>\n
Although GST law does not prescribe a fixed statutory due date, exporters should file their LUT:<\/p>\n
Before issuing the first export invoice of FY 2026-27.
\n
Before making any zero-rated supply without payment of IGST.<\/p>\n
Delaying the filing may require exporters to pay IGST on exports until a valid LUT is furnished.<\/p>\n
Documents Required<\/p>\n
While filing LUT online, keep the following information ready:<\/p>\n
GSTIN
\n
Business details
\n
Authorized signatory details
\n
Witness details (where required)
\n
Valid DSC or EVC for verification<\/p>\n
The filing process is completely online, and physical submission is generally not required.<\/p>\n
Step-by-Step Process to File LUT
\n
Step 1: Login to GST Portal<\/p>\n
Login using your GST credentials.<\/p>\n
Step 2: Navigate to<\/p>\n
Services \u2192 User Services \u2192 Furnish Letter of Undertaking (LUT)<\/p>\n
Step 3: Select Financial Year<\/p>\n
Choose:<\/p>\n
FY 2026-27<\/p>\n
Step 4: Furnish Declaration<\/p>\n
Accept the prescribed declarations and provide the required details.<\/p>\n
Step 5: Submit<\/p>\n
Verify using:<\/p>\n
DSC, or
\n
EVC
\n
Step 6: Download Acknowledgement<\/p>\n
Save the ARN and acknowledgement for future reference and departmental verification.
\n
Exporters’ Annual Compliance Checklist<\/p>\n
Use this checklist every financial year:<\/p>\n
\u2705 File a fresh LUT before the first export.<\/p>\n
\u2705 Verify GST registration is active.<\/p>\n
\u2705 Maintain export invoices with the prescribed export endorsement.<\/p>\n
\u2705 Preserve shipping bills or Bills of Export.<\/p>\n
\u2705 Keep Foreign Inward Remittance Certificates (FIRC) or Bank Realisation Certificates (BRC), wherever applicable.<\/p>\n
\u2705 Reconcile export turnover reported in GSTR-1 and GSTR-3B.<\/p>\n
\u2705 Match export invoices with shipping documents.<\/p>\n
\u2705 Monitor realization of export proceeds within the prescribed timelines.<\/p>\n
\u2705 Preserve LUT acknowledgement and ARN.<\/p>\n
\u2705 Reconcile Input Tax Credit (ITC) before claiming refunds.<\/p>\n
\u2705 Keep all export-related records for departmental scrutiny and audits.<\/p>\n
Common Mistakes to Avoid<\/p>\n
Many exporters face notices due to avoidable errors such as:<\/p>\n
Using an expired LUT.
\n
Filing LUT after issuing export invoices.
\n
Incorrect reporting of zero-rated supplies in GST returns.
\n
Mismatch between shipping bills and GST returns.
\n
Incomplete export documentation.
\n
Delay in filing refund applications.
\n
Failure to reconcile export turnover with books of accounts.
\n
What Happens if LUT is Not Filed?<\/p>\n
If a valid LUT is not available:<\/p>\n
Exporters may have to export on payment of IGST.
\n
Working capital gets blocked until refund is received.
\n
Refund procedures become lengthier.
\n
Additional compliance and documentation may be required.
\n
Best Practices for FY 2026-27<\/p>\n
To ensure smooth GST compliance:<\/p>\n
File LUT at the beginning of every financial year.
\n
Reconcile GST returns every month.
\n
Maintain complete export documentation.
\n
Track realization of export proceeds.
\n
Regularly review Input Tax Credit.
\n
Preserve all GST acknowledgements and refund records.
\n
Conduct periodic GST compliance reviews to identify mismatches early.
\n
Conclusion<\/p>\n
Filing a Letter of Undertaking (LUT) is an essential annual compliance for exporters who wish to export goods or services without payment of IGST. A fresh LUT for FY 2026-27 should be filed before the first export transaction to avoid unnecessary tax payments and cash flow disruptions.<\/p>\n
By combining timely LUT filing with accurate GST return reporting, proper documentation, and regular reconciliations, exporters can remain compliant, reduce refund delays, and ensure smooth international business operations.<\/p>\n","protected":false},"excerpt":{"rendered":"
Learn how to file GST LUT for FY 2026-27, eligibility, validity, documents required, filing process, and the complete annual compliance checklist for exporters.<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[6],"tags":[173,176,90,172,170,175,171,174],"class_list":["post-717","post","type-post","status-publish","format-standard","hentry","category-compliances","tag-export-under-lut","tag-exporters","tag-gst-compliance","tag-gst-export","tag-gst-lut","tag-gst-rfd-11","tag-lut-filing-fy-2026-27","tag-zero-rated-supply"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=717"}],"version-history":[{"count":1,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/717\/revisions"}],"predecessor-version":[{"id":1203,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/717\/revisions\/1203"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}