A common mistake made by Indian freelance video editors, software developers, and digital agencies is assuming that once an LUT (Letter of Undertaking) is submitted, it remains valid forever. An LUT is strictly valid for only one Financial Year and automatically expires on March 31st.
1. Why Does an LUT Expire Every Year?
Under Rule 96A of the Central Goods and Services Tax (CGST) Rules, 2017, a Letter of Undertaking is issued on a financial year basis (April 1 to March 31).
Each financial year represents a distinct tax period. To continue supplying services to foreign clients (export of services) at a 0% GST rate without paying 18% Integrated GST (IGST) upfront, you must file a fresh FORM GST RFD-11 for the new financial year.
2. The Crucial Renewal Deadline
The GST portal opens the window for the upcoming financial year towards the middle of March. You should ideally renew your LUT between March 15 and March 31, before raising your first export invoice of the new financial year starting on April 1st.
Any foreign invoice issued on or after April 1st without an active LUT for that new financial year is technically an export without LUT, creating unwanted scrutiny or potential liability to deposit 18% IGST.
3. Details & Documents Needed for Renewal
Renewing your LUT is completely paperless and free. You do not need any digital stamp paper or bank guarantees. You only need:
- GST Portal Login Credentials: Username and password for
services.gst.gov.in. - Previous Year's LUT ARN: The Application Reference Number from your expiring LUT (available in your GST dashboard).
- Details of 2 Independent Witnesses: Full Name, Occupation, and Address of two witnesses (colleagues, friends, or family members).
- Aadhaar-Linked Mobile Number: To receive an instant OTP for Electronic Verification Code (EVC) signing.
4. Step-by-Step Portal Renewal Process (5 Minutes)
- Log in to the GST Portal: Go to services.gst.gov.in and log in with your credentials.
- Navigate to LUT Furnishing: Click on Services > User Services > Furnish Letter of Undertaking (LUT).
- Select the New Financial Year: In the "LUT Applied for Financial Year" dropdown, choose the upcoming financial year (e.g.,
2026-2027). - Select Previous Year ARN: Check the box stating "Whether LUT has been furnished previously" and enter your previous financial year's LUT Application Reference Number (ARN).
- Affirm the Declarations: Read and check the three statutory self-declaration checkboxes:
- To export goods/services within 1 year.
- To observe all provisions of the GST Acts.
- To pay tax along with interest if export proceeds are not realized.
- Enter Witness Information: Fill in the Name, Occupation, and Address for Witness 1 and Witness 2.
- Sign and Submit via EVC: Select your authorized signatory, select the place of filing, and click SIGN AND FILE WITH EVC. Enter the OTP received on your mobile.
- Instant Confirmation: The portal will display an ARN receipt immediately. Download and archive the PDF acknowledgment for your records.
Ensure your invoicing software (e.g., QuickBooks, Zoho Books, or custom Notion/Excel templates) is updated with the new financial year's ARN or updated date reference.
5. What Happens If You Miss the Date?
If you forgot to renew by March 31 and raised an export invoice in April, don't panic. Under CBIC Circular No. 125/44/2019-GST, delay in furnishing an LUT can be condoned by the jurisdictional GST tax officer if the substantive condition of service export and foreign inward remittance is satisfied.
File your FORM GST RFD-11 immediately on the portal as soon as you realize the omission.