GST LUT application rejected or stuck — common reasons and fixes
Because an LUT is largely a self-declaration, outright rejection is uncommon — most issues are either data-entry mismatches that stall the filing, or a retrospective rejection if the department later finds the exporter didn't actually meet the eligibility criteria. Getting eligibility and basic details right the first time avoids nearly all of them.
Retrospective rejection for eligibility
Per CBIC Circular No. 40/14/2018-GST, an LUT is deemed accepted once the ARN is generated — but if the tax department later establishes that the applicant was actually disqualified (for example, due to a prosecution above the ₹2.5 crore threshold), the LUT can be rejected ab initio, effectively treating exports during that period as if no LUT existed.
Witness detail mismatches
Since two independent witnesses' names, occupations, and addresses are required, inconsistent or incomplete details here are one of the more common reasons a filing gets held up or has to be redone — it's worth double-checking these before submission rather than after.
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Check my eligibility →Signing authority issues
If the person attempting to sign via DSC isn't registered as an authorized signatory on the GST portal, or the EVC OTP fails to reach the right mobile number, the filing simply won't go through — updating the authorized signatory details on the portal first resolves this.
Filing for the wrong financial year
Selecting the wrong year from the dropdown is a simple but surprisingly common mistake, especially for renewals filed close to 31 March — always double-check which financial year each new LUT should be filed for before submitting.
If my LUT gets rejected, can I export in the meantime?
Once the ARN is generated, the LUT is deemed accepted and you can export against it immediately. If it's later found you weren't eligible and the LUT is rejected retrospectively, you'd need to pay IGST on the affected exports — so it's worth confirming eligibility upfront rather than dealing with this after the fact.
This article is for general information only. For your specific situation, consult a practicing CA.
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