Who is eligible to file a GST LUT? Eligibility criteria explained
Any GST-registered exporter of goods or services, or supplier to an SEZ, can file an LUT — with one exception. If you've been prosecuted for any offence under the CGST Act, IGST Act, or an earlier tax law where the amount of tax evaded exceeds ₹2.5 crore, you're not eligible for an LUT and must furnish a bond with a bank guarantee instead, as set out in Notification No. 37/2017-Central Tax.
The default: almost every exporter qualifies
Any business or individual registered under GST, intending to supply goods or services for export or to a Special Economic Zone, is eligible to file an LUT. There's no minimum turnover, no sector restriction, and no requirement to have exported before — a first-time exporter and a company that's shipped goods for a decade qualify on exactly the same terms.
The one disqualifying condition
The single exception is set out in Notification No. 37/2017-Central Tax: anyone prosecuted for an offence under the CGST Act, 2017, the IGST Act, 2017, or any earlier law where the tax evaded exceeds ₹2.5 crore is not eligible to file an LUT. This is a narrow, specific bar — it's about a proven prosecution above that amount, not about turnover, past GST returns filed late, or general compliance history.
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Check my eligibility →What happens if you're not eligible
If you fall under the disqualifying condition, you can still export without paying IGST upfront — just through a bond furnished on non-judicial stamp paper, backed by a bank guarantee, instead of an LUT. See our comparison of LUT and bond for how that route works.
No turnover or export-history requirement
It's worth noting this wasn't always the case. Before CBIC Circular No. 40/14/2018-GST simplified the process, exporters needed to show a minimum turnover and a track record of receiving export proceeds in convertible foreign exchange to use LUT instead of a bond. That requirement was removed, which is why LUT eligibility today is genuinely open to almost any GST-registered exporter, regardless of size or history.
Do first-time exporters need a stronger financial track record to use LUT instead of a bond?
No. Since CBIC Circular No. 40/14/2018-GST, exporters no longer need to show a minimum turnover or prior export earnings to qualify for LUT instead of a bond — LUT is open to virtually any GST-registered exporter who hasn't been prosecuted above the ₹2.5 crore threshold.
This article is for general information only. For your specific situation, consult a practicing CA.
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