LUT for GST-Free Exports
A Letter of Undertaking lets you export goods and services, or supply to an SEZ, without paying IGST upfront — filed once a year, and tracked so the export window never lapses unnoticed.
When you export, that supply is zero-rated — but by default you still pay Integrated GST (IGST) on it and claim the money back afterwards as a refund. A Letter of Undertaking (LUT) is the alternative: a declaration filed on Form GST RFD-11 that lets you export without paying IGST in the first place, so cash is never tied up waiting on a refund. If you have already paid IGST on past exports instead, that is a separate process — see gst-itc-refunds — and the two are not mutually exclusive across your export history.
An LUT is filed entirely online and is valid for one financial year (1 April to 31 March). There is no automatic carry-forward: you file a fresh one before the new financial year starts, or you lose the no-payment facility from 1 April. Filing generates an Application Reference Number (ARN) immediately, and the application is deemed accepted if the jurisdictional officer takes no action within 3 working days — no physical visit, and no separate CA or departmental attestation is required for acceptance.
Not every exporter qualifies. If you have been prosecuted for tax evasion of ₹2.5 crore or more under the CGST Act, the IGST Act or an earlier law, you cannot file an LUT and must furnish a bond instead, usually backed by a bank guarantee of up to 15% of the bond amount. And an LUT is not unconditional once accepted: goods must actually leave India within 3 months of the invoice, and payment for services must be realised within 1 year — miss either and IGST plus interest falls due.
Enquire about LUT & Export Refunds
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If any of these describe where you are right now, this is the service you are looking for.
You export goods or services, or supply to an SEZ unit or developer, and want to avoid paying IGST upfront and waiting on a refund.
Your current LUT is from an earlier financial year and needs refiling before it lapses at the end of the financial year.
You are a new exporter and are not sure whether you qualify for LUT or must furnish a bond with a bank guarantee instead.
You have exported under LUT but the goods have not physically left India, or service payment has not been realised, within the required window.
You have been exporting on payment of IGST and want to compare that route against filing an LUT going forward.
Everything handled, end to end
The full scope of the engagement, so there is nothing to discover halfway through.
Eligibility check — LUT or bond
We confirm whether you qualify for LUT or fall under the tax-evasion bar that requires a bond and bank guarantee instead.
LUT drafting and filing (Form GST RFD-11)
The declaration prepared and filed online with your GSTIN, witness details and authorised-signatory authentication, correctly the first time.
ARN tracking and deemed-approval monitoring
We track your application through to acceptance rather than assuming it went through, including the 3 working days deemed-approval window.
Annual renewal before each financial year
A reminder and refiling cycle so the facility is never allowed to lapse silently at the start of a new financial year.
Export and realisation window tracking
We monitor invoice dates against the 3 months goods / 1 year services deadlines, so a lapse is caught before it becomes a liability.
IGST-plus-interest computation, if a window is missed
If export or realisation genuinely did not happen in time, we compute what is due and file the payment inside the window that follows.
LUT restoration after a lapse
Once the overdue tax and interest is paid, we confirm the facility is restored rather than leaving you exporting on payment of IGST indefinitely.
Coordination with your refund claim, where relevant
If IGST was already paid on some exports instead of using LUT, we hand that claim across to the ITC refund process rather than starting it blind.
What you'll need to hand over
Collected once, at the start. We tell you which of these apply to your case before you gather anything.
Every LUT applicant
- 01GSTIN and PAN of the business
- 02Import Export Code (IEC), where you hold one
- 03Name, occupation and address of two independent witnesses
- 04Authorised signatory's Digital Signature Certificate (mandatory for companies and LLPs) or Aadhaar-linked mobile/email for EVC authentication for other entity types
- 05Previous financial year's LUT acknowledgement (ARN), if this is a renewal
If you are ineligible for LUT and must furnish a bond instead
- 01Bond executed on non-judicial stamp paper for the estimated tax liability on likely exports
- 02Bank guarantee, normally up to up to 15% of the bond amount unless the jurisdictional Commissioner agrees to waive or reduce it based on your track record
- 03Supporting documentation for a bank guarantee waiver request, if you are asking for one
Keep ready for each export, whichever route you use
- 01Shipping bills or bill of export, for goods exports
- 02SEZ endorsement, for supply to an SEZ unit or developer
- 03Foreign Inward Remittance Certificate (FIRC) or bank realisation certificate once payment is received
The witnesses named on your LUT are the same two named on a running bond and bank guarantee, so keep their details consistent year to year rather than substituting names casually at renewal.
5 steps, start to finish
Where the work actually goes, and what we need from you at each stage.
Eligibility check and document collection
We confirm whether LUT is open to you or whether the tax-evasion bar applies, and assemble what the filing needs.
Confirm with us
Form GST RFD-11 filed online
The declaration is submitted with witness details and authenticated by DSC or EVC. An ARN is generated immediately on submission.
On submission
Deemed approval
If the jurisdictional officer takes no action within 3 working days, the LUT is deemed accepted — no separate approval notice is issued.
3 working days
Export and realisation tracked through the year
Invoice dates are monitored against the 3 months (goods) / 1 year (services) windows so a lapse is caught early, not at year-end.
Ongoing through the financial year
Renewal ahead of the next financial year
A fresh LUT is prepared and filed before the financial year closes, so the no-payment facility carries into the new year without a gap.
Confirm with us
What to expect, and what it costs
Timelines are indicative and depend on departmental processing and how quickly documents come back to us. Message us on WhatsApp for a written quote.
Enquire on WhatsApp- LUT validity, once accepted
- one financial year (1 April to 31 March)
- Officer review window before deemed approval
- 3 working days
- Window to actually export goods under LUT
- 3 months
- Window to realise payment for services under LUT
- 1 year
- Window to pay IGST plus interest after a missed deadline
- 15 days
Professional fees
On request
Common questions
The questions we are actually asked about LUT & Export Refunds. If yours is not here, ask us directly.
An LUT (Form GST RFD-11) is a declaration that lets you export without paying IGST at all, instead of paying it and reclaiming it through the refund process on gst-itc-refunds. It keeps cash free rather than sitting with the department pending a refund, which is why most regular exporters file one rather than exporting on payment.
one financial year (1 April to 31 March). There is no carry-forward — you must file a fresh LUT before the new financial year begins, or you lose the no-payment facility from the start of the new financial year until a new one is accepted. We treat this as an annual renewal, not a one-time filing.
You cannot file an LUT if you have been prosecuted for tax evasion of ₹2.5 crore or more under the CGST Act, the IGST Act or an earlier law. You must furnish a bond instead, generally backed by a bank guarantee of up to 15% of the bond amount, though the jurisdictional Commissioner can waive or reduce that based on your track record.
For goods, you have 3 months from the invoice date; for services, payment must be realised within 1 year. Miss either and you must pay the IGST due plus interest within 15 days of the deadline expiring. Fail to pay and the LUT facility is deemed withdrawn until you do — it is restored once the amount is settled.
No. Filing is fully online through Form GST RFD-11, authenticated by DSC or EVC, with an ARN generated immediately on submission. There is no physical document submission and no separate departmental sign-off required — the application is deemed accepted if the officer takes no action within 3 working days.
Yes. Supply to a Special Economic Zone (SEZ) unit or developer is treated as a zero-rated supply in the same way as a physical export, so the same LUT covers both — you do not need a separate declaration for SEZ supplies.
Yes — that is a refund claim, not an LUT matter, and it runs on its own two-year time limit from the relevant date. See gst-itc-refunds for that process; filing an LUT going forward and claiming a refund on past IGST-paid exports are not mutually exclusive.
Your GSTIN and PAN, and the name, occupation and address of two independent witnesses — the same two named on a running bond and bank guarantee if you ever move to that route. Companies and LLPs authenticate with a Digital Signature Certificate; other entity types can use EVC.
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