GST LUT application-Resolution of errors on portal!

Filing a Letter of Undertaking (LUT) under GST is crucial for exporters to supply goods without paying IGST. While the process is fully online, taxpayers often face technical errors during submission.

This FAQ covers common errors, their causes, and solutions, helping businesses resolve issues like portal glitches, DSC registration problems, and jurisdiction updates for a smooth LUT filing experience.

Let’s understand in detail!

What is LUT (Letter of Undertaking) in GST?

Filing GST RFD-11 (Letter of Undertaking - LUT) is mandatory for exporting goods, services, or both without paying Integrated Tax (IGST). If an LUT is not submitted, exports can only be carried out by paying IGST or providing an export bond. Initially, only the export bond option was available. However, to simplify the process and enhance ease of doing business, the government introduced the LUT mechanism. Previously, LUT filing was done offline at the GST office, but now the entire process has been migrated online. Exporters can conveniently submit their LUT through the GST portal by following a few simple steps.

Who Needs to Furnish a Letter of Undertaking (LUT)?

Any registered taxpayer opting to supply goods or services for export or to SEZs (Special Economic Zones) without paying Integrated Tax (IGST) must furnish an LUT before making the supply. However, this option is only available if the taxpayer has not been prosecuted for tax evasion of ₹2.5 crore or more under the CGST Act, IGST Act, or any existing tax laws.

LUT can be used for the following transactions:

• Zero-rated supply to SEZs without IGST payment.
• Export of goods to countries outside India without IGST payment.
• Providing services to overseas clients without IGST payment.

Resolutions for common errors on portal:

Conclusion

Filing an LUT under GST is essential for exporters to operate without paying IGST, but technical errors can sometimes hinder the process. Understanding the common issues and their solutions ensures a smoother experience while submitting LUT applications on the GST portal.

By following the suggested resolutions whether it’s troubleshooting portal glitches, DSC registration errors, or jurisdiction updates taxpayers can minimize disruptions and ensure seamless compliance with GST regulations.

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