Avoiding Common Errors in GST LUT Filing: A Guide for Businesses

NOIDA, India - July 24, 2025 - PRLog -- The Goods and Services Tax (GST) regime is a great move in India's taxation landscape. With domestic businesses, it has also streamlined tax compliances for exporters. It allows exporters to file a Letter of Undertaking (LUT) to export goods or services without paying Integrated GST (IGST). However, many exporters often make various errors, resulting in delays or even fines/penalties.

Exploring these common errors can help avoid them to ensure smooth GST LUT filing.

1. Incorrect or Incomplete Details

One of the common errors in GST LUT filing is filling up incorrect details, such as the wrong GSTIN, business or trade name, or authorized signatory information. Even small discrepancies can cause LUT rejection so cross-verifying all form entries is essential before submission.

2. Missing Digital Signature

The LUT must be digitally signed by an authorized signatory. Forgetting signing or using an unapproved DSC in the form can lead to rejection.

3. Late Filing

An LUT must be filed before the beginning of the financial year (April 1) or before executing their first export.

4. Not Updating for New Financial Year

A GST LUT filing is valid for one financial year only. Companies that forget to renew face compliance issues. Exporters must file LUT annually to continue enjoying the benefits.

5. Choosing Wrong Form

Some taxpayers mistakenly file a Bond instead of an LUT, especially where export turnover exceeds ₹5 crores. Though both serve a similar purpose, an LUT is simpler, and no bank guarantee is required. So choose the correct form.

6. Neglecting Post-Filing Verification

After submission, businesses must check that the LUT shows on the GST portal. Many assume submission is enough and later find out the filing failed or was incomplete due to technical errors.

Seek professional help to minimize errors and reduce chances of rejection.

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