LUT
Annual undertaking enabling export of goods or services without payment of IGST under bond.
Filing window
Annual filing by 31 March for the following financial year
Regulator
Central Board of Indirect Taxes and Customs (CBIC)
Regulator
Central Board of Indirect Taxes and Customs (CBIC)
Deadline
Annual filing by 31 March for the following financial year
Penalty
Without valid LUT, exports must pay IGST upfront and claim r...
Legal basis
Central Goods and Services Tax Act, 2017
What is LUT?
Annual undertaking enabling export of goods or services without payment of IGST under bond.
- +All GST-registered taxpayers
- +Service exporters under LUT
- +Foreign-owned subsidiaries with cross-state operations
Statutory basis
Central Goods and Services Tax Act, 2017
Section 16(3)(a) read with Rule 96A
Enforced by
Central Board of Indirect Taxes and Customs (CBIC), through GSTN portal
Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.
The stake
Filing window for LUT. Skipping or mishandling this compliance carries direct financial and operational consequences.
Why LUT matters for your GCC
LUT is a GST requirement for foreign-owned Indian entities and GCCs. Missing the annual filing by 31 march for the following financial year obligation triggers without valid lut, exports must pay igst upfront and claim refund subsequently, creating cash flow drag, and downstream filings or transactions may be blocked until rectification. Most foreign parents discover LUT issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.
The 4 ways LUT goes wrong
Real scenarios from real GCC compliance audits. Each one preventable.
Trap 01
Mismatching figures between GSTR-1, GSTR-3B, and the books, triggering reconciliation notices
Trap 02
Claiming input tax credit on invoices not appearing in GSTR-2B
Trap 03
Missing the monthly deadline and incurring late fees that exceed the actual tax payable
Trap 04
Misclassifying inter-state versus intra-state supplies (IGST vs CGST and SGST)
Done for you
Accounting and Tax
IRPR Network handles LUT as part of our Accounting and Tax service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.
Our workflow
- 01Identify the trigger event in your GCC operations
- 02Prepare and validate the LUT filing or compliance step
- 03Submit to the regulator and obtain acknowledgement
- 04Track in your compliance calendar for ongoing or recurring obligations
Concepts connected to LUT
These terms are filed together, depend on each other, or share regulatory authority.
GST
GSTR-3B
Monthly summary GST return reporting outward supplies, inward supplies, and tax payable; due by 20th of following month.
GST
GSTR-1
Monthly GST return reporting invoice-level details of all outward supplies of goods and services.
FEMA and RBI
SOFTEX
Mandatory RBI declaration filed for export of software, services, or IP from India exceeding USD 25,000 per invoice.
Asked about LUT
5 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.
Need help with LUT?
IRPR Network manages LUT as part of Accounting and Tax, with a zero-penalty guarantee.
Explore the serviceQ01What is LUT and who does it apply to?
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Annual undertaking enabling export of goods or services without payment of IGST under bond. For foreign-owned GCCs, LUT applies to all gst-registered taxpayers. IRPR Network handles LUT as part of our Accounting and Tax service.
Q02When is LUT due?
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LUT is due annual filing by 31 march for the following financial year. Late filing triggers without valid lut, exports must pay igst upfront and claim refund subsequently, creating cash flow drag.
Q03What law governs LUT?
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LUT is governed by Central Goods and Services Tax Act, 2017, specifically Section 16(3)(a) read with Rule 96A. The compliance is enforced by Central Board of Indirect Taxes and Customs (CBIC), through GSTN portal.
Q04What is the penalty for non-compliance with LUT?
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Non-compliance attracts: Without valid LUT, exports must pay IGST upfront and claim refund subsequently, creating cash flow drag IRPR Network's compliance retainer is designed to prevent these exposures through proactive filing, citation tracking, and a defined compliance calendar.
Q05Who handles LUT for foreign-owned GCCs in India?
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IRPR Network handles LUT end-to-end as part of our Accounting and Tax service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.
Handle LUT the right way, the first time.
Book a 30-minute consultation. We will map your LUT obligations alongside every other India compliance for your GCC, on one calendar, one retainer.
Book a consultation