The GST Portal has activated the functionality to file the Letter of Undertaking (LUT) for the Financial Year 2025-26. A LUT is essential for exporting goods or services and for making supplies to Special Economic Zones (SEZ) without payment of IGST. It must be renewed annually, and the current LUT for FY 2024-25 will expire on 31st March 2025.
Why File LUT?
A valid LUT enables exporters and SEZ suppliers to avoid paying IGST. Without it, IGST must be paid, necessitating the use of Input Tax Credit (ITC) or cash payment if ITC is insufficient. Alternatively, an export bond must be furnished.
Steps to File LUT:
- Log in to the GST Portal.
- Navigate to Dashboard > Services > User Services > Furnish Letter of Undertaking.
- Select FY 2025-26.
- Attach the previous year’s LUT and provide relevant details.
- Complete the checkboxes and submit the application.
The LUT application generates an Application Reference Number (ARN), which serves as the LUT number. This ARN must be included on invoices for exports or SEZ supplies made without IGST payment.
Key Reminder:
File your LUT for FY 2025-26 promptly to ensure seamless compliance and avoid IGST liabilities on exports or SEZ supplies.
Source #GST Portal
