LUT Filing for Freelancers: Complete Guide 2026

If you're an Indian freelancer earning from USA, UK, Canada, or any foreign client, you NEED a Letter of Undertaking (LUT).

Without it, you'll pay 18% IGST upfront on every invoice — and wait months for a refund.

This guide covers:

• What is LUT and why you need it
• How to file LUT (step-by-step)
• Documents required
• Common mistakes to avoid
• What happens if LUT expires

Let's dive in.

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What is LUT (Letter of Undertaking)?

LUT is a declaration you file with GST authorities stating that you'll export goods/services without paying IGST.

Simple version: LUT lets you invoice international clients at 0% GST instead of 18% IGST.

Example:

• WITHOUT LUT: Invoice $1,000 client → Charge 18% IGST (₹15,000) → Pay upfront → Claim refund after 2-3 months
• WITH LUT: Invoice $1,000 client → 0% GST → Client pays full amount → No tax hassle

Which would you prefer?

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Who Needs to File LUT?

You need LUT if: ✅ You're a freelancer/service provider ✅ You export services to foreign clients ✅ Your annual turnover > ₹20 lakhs ✅ You want to avoid paying 18% IGST upfront

Services covered:

• Web development
• Graphic design
• Content writing
• Digital marketing
• Consulting
• IT services
• Any professional service exported

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How to File LUT: Step-by-Step Process

Step 1: Login to GST Portal

• Visit www.gst.gov.in
• Login with your GSTIN and password

Step 2: Navigate to LUT Section

• Go to Services → User Services → Furnish Letter of Undertaking (LUT)

Step 3: Fill Form RFD-11

• Financial Year: Select current FY (2026-27)
• Declaration: Tick all boxes
• Export details: Mention service category
• Bank details: Add your bank account

Step 4: Upload Documents

Required documents:

1. Export invoices (last 6 months) - PDF
2. Bank statements showing foreign remittances - PDF
3. ITR acknowledgment (previous year) - PDF
4. Client agreements/contracts - PDF (optional but recommended)
5. FIRA certificates - PDF (if available)

Step 5: Submit Application

• Review all details
• Click "Submit with DSC" or "Submit with EVC"
• Save ARN (Application Reference Number)

Step 6: Track Status

• Check status in Services → Track Application Status
• Approval takes 3-7 working days
• You'll receive approval on GST portal

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Documents Required for LUT Filing

Document	Why Needed	Format
Export Invoices	Proof of export services	PDF
Bank Statements	Foreign remittance proof	PDF
ITR Acknowledgment	Tax compliance proof	PDF
Client Contracts	Service agreement proof	PDF
FIRA Certificates	RBI compliance	PDF
GST Certificate	Identity verification	PDF

Pro Tip: Keep digital copies organized in a folder labeled "LUT-2026-27" for easy access.

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Common Mistakes to Avoid

Mistake #1: Filing Too Late

Problem: You filed LUT in May, but needed it from April 1 Solution: File LUT by March 25th for next financial year

Mistake #2: Missing Documents

Problem: Application rejected due to incomplete docs Solution: Prepare all documents BEFORE starting application

Mistake #3: Wrong HSN/SAC Code

Problem: Mentioned wrong service code Solution:

• Web development: 998313
• Graphic design: 998311
• Consulting: 998314

Mistake #4: Forgetting to Renew

Problem: LUT expired, invoiced at 0% GST → ₹50,000 penalty Solution: Set calendar reminder for March 1st every year

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What Happens If LUT Expires?

Scenario: Your LUT expired on March 31. You sent an invoice on April 5 at 0% GST.

Consequences:

1. ❌ Invoice is invalid (should have 18% IGST)
2. ❌ Penalty: ₹10,000 for wrong invoice format
3. ❌ Penalty: ₹40,000+ for non-compliance
4. ❌ Interest on unpaid IGST (18% per annum)
5. ❌ GST audit risk increases

Total exposure: ₹50,000 - ₹1,00,000+

How to avoid this:

• File LUT renewal by March 25 (before March 31 expiry)
• Use Zolance to get auto-alerts at 30, 15, 7 days before expiry
• Never create invoices without valid LUT

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LUT Validity Period

• Validity: 1 Financial Year (April 1 - March 31)
• Renewal: Every year before March 31
• Backdating: New LUT is valid from April 1 (not filing date)

Example:

• Filed LUT on May 15, 2026
• Validity: April 1, 2026 - March 31, 2027
• Covers all invoices from April 1 onwards

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HSN/SAC Codes for Common Freelance Services

Service	HSN/SAC Code
Web Development	998313
Graphic Design	998311
Content Writing	998399
Digital Marketing	998399
Consulting Services	998314
IT Support	998313
App Development	998313

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How Zolance Helps with LUT Management

Forgetting LUT renewal is the #1 mistake freelancers make.

Zolance automates this: ✅ Tracks your LUT expiry date ✅ Sends email alerts at 30, 15, 7 days before expiry ✅ Blocks invoice creation if LUT expired (prevents penalties) ✅ Auto-populates LUT ARN on all invoices ✅ Stores LUT documents in secure cloud

Try Zolance free: zolance.in

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FAQs

Q: Can I file LUT after exporting without LUT? A: Yes, but you'll face penalties. File immediately and pay any outstanding IGST.

Q: Is LUT mandatory for all exporters? A: No. Only if you want to export at 0% GST. Otherwise, charge 18% IGST and claim refund.

Q: Can I use one LUT for multiple services? A: Yes. One LUT covers all your export services.

Q: What if my LUT application is rejected? A: Check rejection reason, fix issues, and reapply. Common reasons: incomplete docs, wrong HSN code.

Q: Do I need to file LUT separately for each state? A: No. One LUT is valid for exports from any state.

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Conclusion

Filing LUT is non-negotiable for freelancers earning from abroad.

Key Takeaways: ✅ File LUT before April 1 every year ✅ Keep all documents ready ✅ Use correct HSN/SAC codes ✅ Never invoice without valid LUT ✅ Set reminders for renewal (or use Zolance)

Next Steps:

1. Check your LUT expiry date
2. Set up auto-reminders
3. Prepare renewal documents
4. File before March 25, 2027

Need help tracking LUT expiry? Try Zolance — it sends automatic alerts and prevents costly mistakes.

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About the Author: This guide was created by the team at Zolance, a GST compliance automation tool for Indian freelancers. We help 1,000+ freelancers automate LUT tracking, invoice generation, and tax filing.

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