If you’re an exporter in India, you need to submit a Letter of Undertaking (LUT) each year to avoid paying IGST upfront on your exports. This is a facility given under Section 16 of the IGST Act to make exports easier and cash-flow friendly. The LUT is valid only for one financial year, so it must be renewed annually. For the 2025–26 financial year, make sure to renew your LUT before 31st March 2025 to keep exporting smoothly without any tax-related delays.
The LUT Renewal Checklist for FY 2025–26 is a simple blog made to help exporters in India who are registered under GST. It helps you through how to renew your Letter of Undertaking (LUT) for the financial year starting 1st April 2025 to 31st March 2026.
If you want to export goods or services without paying IGST in advance, it is necessary to renew your LUT. As per GST rules, the LUT is only valid for one financial year, so it should be updated each year to keep your exports running smoothly.
Renewing your LUT on time is important because without it, you’ll have to pay IGST every time you export something.
That means:
Keeping your LUT updated helps you avoid all these inconvenience and lets you export smoothly without paying tax upfront.
Before you start the LUT renewal process, it’s important to check if you’re eligible. Here’s what you need to qualify:
Make sure to submit your LUT on or before 31st March 2025 so that it stays valid from 1st April 2025. Renewing it on time helps you avoid any breaks or delays in your export activities.
Once you submit your LUT application, you’ll get an Application Reference Number (ARN); think of it as your digital proof that the government has received your form.
It’s a good idea to download and save the acknowledgment immediately after submission. Keeping this document safe can save you from unnecessary stress, confusion, or delays down the line.
| Aspect | Letter of Undertaking (LUT) | Bond |
|---|---|---|
| Who can file? | Exporters with no prosecution for tax evasion | Exporters prosecuted for tax evasion or who choose not to file LUT |
| Security deposit | No security deposit required | Security deposit or bank guarantee required |
| Complexity | Simple and faster to file | More formalities and documentation are needed |
| Validity | Valid for one financial year | Valid until cancelled or modified |
| Cost involved | No upfront cost (other than compliance) | May involve cost for bank guarantee or security deposit |
| Use case | Preferred option for most exporters | Used when LUT is not allowed or opted out |
In short, renewing your LUT on time saves you from unnecessary expenses and helps your exports run smoothly without financial or procedural hurdles.
Renewing your LUT for FY 2025–26 is an important step to ensure smooth, tax-free exports. When you renew on time and follow the rules, you avoid unnecessary payments, save time, and stay compliant with GST laws.
It also helps you maintain a steady cash flow and focus on growing your business instead of dealing with delays or refund paperwork.
How GST LUT affects Invoicing and Accounting?
Information on LUT for Exporter under GST
All You Need to Know About GST LUT
How LUT Simplifies GST Compliance?
It’s valid for one financial year, so you need to renew it every year.
Any GST-registered exporter who hasn’t been prosecuted for tax evasion over ₹2.5 lakh can file an LUT.
Yes, if you want to export without paying IGST upfront, filing an LUT is a must.
You’ll have to pay IGST on your exports and then apply for a refund, which takes time and can affect your cash flow.
No, the LUT can only be filed online on the official GST portal.
No, it’s completely free of cost.
No, once submitted, it cannot be changed. If needed, you must file a new LUT.
Log in to the GST portal and go to: Services → User Services → View my Submitted LUTs.
ARN stands for Application Reference Number. It’s a unique number you get once your LUT is submitted successfully.
Yes, always include your LUT number on export invoices to claim zero-rated benefits.
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