Letter of Undertaking (LUT) in GST —
Export Without Paying IGST
How exporters file Form RFD-11 online to supply goods, services and SEZ supplies without paying IGST — eligibility, validity, invoice wording, LUT vs bond and the ITC refund route.
A Letter of Undertaking (LUT) lets any GST-registered exporter supply goods, services or SEZ supplies without paying IGST on the invoice. It is filed online in Form RFD-11 under Rule 96A of the CGST Rules, is free and auto-approved, needs no bank guarantee, and is valid for one financial year. Accumulated input-tax credit is recovered later by filing Form RFD-01.
LUT Filing — Key Facts
The essentials of a Letter of Undertaking under GST, so you can file correctly and quote the ARN on every export invoice for the year.
| Detail | Specification |
|---|---|
| Form | RFD-11 (Letter of Undertaking) |
| Legal basis | Rule 96A, CGST Rules 2017 (zero-rated supply, Sec 16 IGST Act) |
| Portal path | gst.gov.in → Services → User Services → Furnish Letter of Undertaking (LUT) |
| IGST on invoice | Nil — exported without payment of tax |
| Validity | One financial year (1 April to 31 March) |
| Signing | DSC (companies / LLPs) or EVC / OTP (proprietors / partnerships) |
| Witnesses | Two (name, address, occupation) |
| Approval | Auto-approved — ARN generated instantly |
| Bank guarantee | Not required |
| Covers | Export of goods, export of services, supply to SEZ unit / developer |
GST 2.0 (effective 22 September 2025) rationalised goods/services rates but did not change LUT or export rules — exports stay zero-rated.
An LUT covers only the financial year in which it is filed. File a fresh RFD-11 at the start of each FY (from 1 April) so all your exports for the year are covered — there is no auto-renewal.
LUT Eligibility — Who Qualifies?
Under Rule 96A, almost every GST-registered exporter can furnish a simple LUT — IT and service exporters, manufacturers exporting goods, freelancers and consultants billing overseas clients, and businesses supplying to SEZ units or developers.
There is one disqualification: a person who has been prosecuted for any offence under the CGST/IGST Act or an earlier indirect-tax law where the tax evaded exceeds ₹2.5 crore cannot file a simple LUT and must instead furnish a bond with a bank guarantee. Note this is about actual prosecution, not a mere show-cause notice or demand.
You can file a simple LUT if
- You are registered under GST with a valid GSTIN
- You export goods or services, or supply to SEZ
- You have not been prosecuted for tax evasion over ₹2.5 crore
- You want to export without blocking cash in IGST
You must file a bond instead if
- You were prosecuted for a tax offence exceeding ₹2.5 crore
- A GST officer specifically directs you to furnish a bond
- You cannot give the LUT self-declaration truthfully
Not sure whether you qualify for LUT or need a bond? Get it checked.
Talk to a GST Expert →How to File LUT (RFD-11) on the GST Portal
Filing is entirely online and usually takes under 10 minutes. The application is auto-approved — no manual officer approval is required.
- Select the correct financial year (e.g. 2026-27)
- GSTIN, legal name & address auto-populate
- Tick the declaration (no prosecution over ₹2.5 crore)
- Enter two witnesses — name, address, occupation
- Sign with DSC (company/LLP) or EVC/OTP (proprietor/firm)
- Submit — ARN is generated instantly
- Download and save the filed LUT
- Quote the LUT ARN on every export invoice for the FY
If you exported without IGST but forgot to file the LUT, CBIC circulars allow filing the LUT and treating past exports as covered. But if a GSTR-1 already shows those supplies as zero-rated without an LUT, an officer may demand IGST — file the LUT promptly and keep FIRC/BRC, invoices and shipping bills ready.
LUT vs Bond vs Pay-IGST-and-Refund
There are three ways to handle IGST on a zero-rated export. Almost every exporter uses the LUT route because it is free, needs no security and is auto-approved.
| Feature | LUT (preferred) | Bond with surety | Pay IGST + refund |
|---|---|---|---|
| Eligibility | All exporters (no prosecution over ₹2.5 Cr) | Prosecution history / officer-directed | All registered exporters |
| Bank guarantee | None | Required | None |
| IGST on invoice | Nil | Nil | Charged |
| Cash-flow impact | No upfront tax outgo | No upfront tax outgo | IGST blocked until refund |
| Refund route | RFD-01 (ITC refund) | RFD-01 (ITC refund) | Auto ICEGATE (goods) / RFD-01 (services) |
| Filing | Online RFD-11 · auto-approved | Manual · officer approval | No pre-filing needed |
The bond route is rare; it applies only where a taxpayer is disqualified from LUT or an officer directs a bond.
Export under LUT — no upfront IGST
- File RFD-11 once per financial year
- No IGST charged on the export invoice
- No bank guarantee or deposit
- Recover input GST via RFD-01 refund
- Best cash flow for exporters
Pay IGST then claim refund
- No LUT needed — pay IGST on export
- Cash blocked until refund is processed
- Goods: auto-refund via shipping bill / ICEGATE
- Services: claim refund in RFD-01
- Only sensible if LUT is unavailable
Choosing between LUT and paying IGST? We will set up the right route for your exports.
Get Export GST Advice →What to Write on an Export Invoice Under LUT
Every export invoice raised under an LUT must carry a clear declaration that IGST is not charged, plus the LUT ARN. Getting this wrong can let an officer treat the supply as a normal taxable domestic supply.
| Supply type | Mandatory declaration on invoice |
|---|---|
| Export of goods | "Supply meant for export under LUT without payment of IGST. LUT ARN: [ARN]" |
| Export of services | "Supply of services meant for export under Letter of Undertaking without payment of IGST. LUT ARN: [ARN] dated [DD/MM/YYYY]" |
| Supply to SEZ unit / developer | "Supply to SEZ unit/developer for authorised operations under LUT without payment of IGST. LUT ARN: [ARN]" |
Report these in GSTR-1 Table 6A (exports) / Table 6B (SEZ) as zero-rated without payment of tax; keep the IGST amount as zero.
Claiming the ITC Refund After Exporting Under LUT
Because you charge no IGST, input GST on your purchases accumulates as unused input tax credit. Recover it by filing Form RFD-01 for zero-rated supplies without payment of tax.
- Upload export invoices, and FIRC / BRC for services or SEZ endorsement for SEZ supplies.
- Provide bank details and submit with DSC / EVC; you receive an RFD-02 acknowledgement.
- A 90% provisional refund (RFD-04) is issued within 7 working days, final order (RFD-06) typically within 60 days.
Refund claims fail when export values in GSTR-1 (Table 6A) do not reconcile with the ITC and turnover in GSTR-3B. File both accurately for every period before applying under RFD-01.
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