GST Letter of Undertaking (LUT) is a legal declaration filed by a registered GST taxpayer in Form RFD-11 on the GST portal, stating that the exporter will comply with all export-related GST provisions. By filing an LUT, the exporter is permitted to export goods and services, or supply goods and services to SEZ units and developers, without paying Integrated Goods and Services Tax (IGST) upfront. The LUT is filed annually at the beginning of each financial year and is one of the most important and financially impactful GST compliance steps for any business engaged in exports or SEZ supplies.

Filing a GST LUT is far more advantageous than the alternative of paying IGST upfront and subsequently claiming a refund for the following reasons: First, it protects working capital — paying 18% IGST on a large service export invoice, for example, can lock up a significant amount of cash for 60-90 days or longer until the refund is processed. Second, IGST refund processes, while legally mandated within 60 days, are often delayed by GST department queries, portal mismatches, and administrative backlogs — creating uncertainty and cash flow stress. Third, the LUT mechanism is administratively simpler — there are no refund applications to file, no department interactions required, and no waiting for refund disbursals. For any business with regular export transactions, the LUT is unequivocally the better compliance mechanism.

Any GST-registered exporter in India is eligible to file an LUT under Rule 96A of the CGST Rules, 2017, provided they have not been prosecuted for any offence under the CGST Act, IGST Act, or any erstwhile indirect tax law where the tax evasion amount exceeds INR 2.5 Crore. This eligibility covers all categories of exporters — individual exporters, proprietorships, partnership firms, LLPs, private limited companies, and public limited companies — across all industries and across all categories of exports (goods, services, and SEZ supplies). An exporter who has been prosecuted for major tax evasion above INR 2.5 Crore must instead provide a Bond with bank guarantee.

GST LUT is valid for one complete financial year — from April 1st to March 31st of the year in which it is filed. If you file the LUT in June for the current financial year, it will be valid from the date of filing through March 31st of that year. It does not automatically carry over to the next financial year. A fresh LUT must be filed at the commencement of every new financial year before making the first export supply. CleverCoins proactively manages annual LUT renewals for its clients, filing the new year's LUT before April 1st to ensure uninterrupted export compliance.

Form RFD-11 is the prescribed form under the CGST Rules, 2017 used to file a Letter of Undertaking (LUT) on the GST portal. It is available on the GST portal at gst.gov.in under the 'Refunds' section. The form requires the exporter to provide their GSTIN, PAN, authorised signatory details, self-declaration statements regarding non-prosecution and compliance, details of the type of zero-rated supply being made, and to sign the form using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Upon successful submission, the system generates an Application Reference Number (ARN) and a Letter of Undertaking acknowledgement that serves as the official LUT acceptance.

Yes, absolutely. The GST LUT is equally applicable to service exporters as it is to goods exporters. Service exporters — including IT companies, software firms, business process outsourcing (BPO) companies, management consultants, architects, engineers, legal service providers, and any other service provider whose clients are located outside India and who receives payment in foreign exchange — are all eligible to file an LUT and export their services without paying IGST. In fact, for the IT and software services sector, which involves large-value service invoices raised on foreign clients, the LUT is particularly critical to protecting working capital.

If you export goods or services without a valid filed LUT and without paying IGST, you are in technical violation of GST export provisions. The consequences can include: the export being treated as a taxable supply rather than a zero-rated supply, a demand for IGST payment along with interest on the unpaid tax, possible penalties for non-compliance with GST provisions, and difficulty in claiming ITC refunds on inputs used in producing the exported goods or services. If you have already exported without an LUT, you may need to either pay the IGST retrospectively or explore remedial options under the GST Act. CleverCoins advises exporters who have exported without an LUT on the appropriate corrective course of action.

Yes. Supply of goods and services to Special Economic Zone (SEZ) units and SEZ developers is treated as a zero-rated supply under Section 16 of the IGST Act — identical in treatment to international exports. An LUT must be filed before making zero-rated supplies to SEZ units or developers. Without a valid LUT, the supplier must charge IGST on SEZ supplies, after which the SEZ unit can claim a refund. For businesses that regularly supply to SEZ units — including component manufacturers, software service providers, and logistics companies — filing an LUT is essential to maintaining the intended tax-neutral status of SEZ transactions

Both LUT and Bond are mechanisms to export without paying IGST upfront, but they differ significantly. An LUT is a simple online declaration available to all eligible exporters who have not been prosecuted for major tax evasion — it requires no bank guarantee, no physical submission, and involves minimal administrative effort. A Bond, on the other hand, is required only for exporters ineligible for the LUT (typically those prosecuted for tax evasion above INR 2.5 Crore) — it requires a bank guarantee of 15% of the bond amount, involves a more complex physical process, and blocks working capital in the form of the bank guarantee. For the vast majority of exporters, the LUT is the appropriate and preferred mechanism.

Yes. A GST LUT must be filed afresh at the commencement of every new financial year. The LUT for one financial year (e.g., FY 2025-26) is not automatically valid for the next financial year (FY 2026-27). If you do not renew your LUT before April 1st of the new financial year, any export made in the new year without IGST payment will be in violation of GST provisions until the LUT is filed. CleverCoins manages annual LUT renewals for all its exporter clients — proactively filing the new year's LUT in March so that April 1st transitions are always seamless and compliant.

By filing an LUT, the exporter makes the following key commitments to the government: (1) To export the goods or services within the time prescribed under GST law — generally 3 months for goods exports from the date of the export invoice, and 1 year for service exports from the date of the service invoice (in the case of receiving foreign exchange). (2) To realise the foreign exchange proceeds from the export within the prescribed time. (3) To pay the IGST that would have been paid along with interest (currently 18% p.a.) in the event that the export obligations are not fulfilled within the prescribed time. Failure to meet these obligations converts the zero-rated supply into a taxable supply retroactively.

Yes. If your business has GST registrations in multiple states (multiple GSTINs), each GSTIN is treated as a separate taxable person under GST law. An LUT must be filed separately for each GSTIN from which export supplies are made. A single LUT filed for one GSTIN does not cover export supplies made from a different GSTIN. Businesses with multi-state GST registrations that make exports from multiple locations must ensure that each relevant GSTIN has a valid, filed LUT for the current financial year. CleverCoins manages multi-GSTIN LUT filing for businesses with pan-India GST registrations as part of its comprehensive GST compliance service.

When an exporter files an LUT and exports without paying IGST, all Input Tax Credit (ITC) accumulated on inputs, input services, and capital goods used in the production of the exported goods or services remains fully available. The exporter can claim a refund of this accumulated ITC under Section 54 of the CGST Act — by filing a refund application in Form RFD-01 on the GST portal. This ITC refund is a separate process from the LUT and is available even when the LUT mechanism is used. In fact, the combination of LUT (for zero IGST outflow) and ITC refund (for recovering input taxes) provides the most tax-efficient export structure available under the GST framework.

No. There is no government fee or charge for filing an LUT on the GST portal. The filing of Form RFD-11 is completely free of cost on the GST portal. However, exporters who engage a professional GST consultant like CleverCoins to handle the LUT filing on their behalf will pay a professional service fee — which covers the consultant's expertise in ensuring accurate filing, pre-filing compliance verification, DSC management, and post-filing support. CleverCoins offers transparent, competitive pricing for LUT filing with no hidden charges, providing significant value relative to the potential IGST savings and working capital benefits the LUT delivers

No. The GST portal performs a compliance check when an LUT application is submitted. If the exporter has pending or overdue GST returns — including GSTR-1 and GSTR-3B for previous tax periods — the portal will block the LUT submission until all pending returns are filed and the compliance status is cleared. This is one of the most common reasons why LUT filings fail or get delayed. CleverCoins checks and addresses return filing compliance as part of its pre-filing verification process, ensuring that pending returns are identified and filed before the LUT application is submitted, preventing any submission failure.

When an exporter has a valid LUT, exports must be reported in GST returns as follows: In GSTR-1 (outward supplies return), zero-rated export supplies are reported in Table 6A (exports without IGST payment, since an LUT is in place). The export invoices must include all relevant details — invoice number, invoice date, shipping bill number (for goods exports), and the GSTIN of the exporter. In GSTR-3B (summary return), zero-rated supplies without payment of tax are reported in Table 3.1(b) — Inter-state supplies attracting 0% IGST. It is critical that exports are correctly reported in both GSTR-1 and GSTR-3B with all required details, as mismatches between these returns can trigger GST department notices. CleverCoins ensures correct reporting of exports in all GST returns.

When exporting under an LUT, the export invoice must include the following specific declarations and details: (1) The supplier's GSTIN. (2) A declaration that the supply is made under an LUT and that IGST has not been charged — typically worded as 'Supply meant for Export/SEZ under LUT without payment of Integrated Tax.' (3) The LUT reference number or ARN of the filed LUT. (4) The export invoice number, date, and description of goods/services. (5) The currency and amount of the export transaction in foreign currency. (6) For goods exports — the shipping bill details once available. Incorrect or incomplete export invoices can create complications with customs, GST refund claims, and foreign exchange realisation. CleverCoins provides clients with an export invoice template compliant with all GST requirements.

Under GST LUT provisions read with FEMA regulations, the prescribed time limits for foreign exchange realisation are as follows: For export of goods — the export proceeds must be realised within 9 months from the date of export (as per RBI/FEMA guidelines, with certain extensions permitted). For export of services — the payment for services must be received in convertible foreign exchange within 1 year from the date of issue of the export invoice (or within the period of completion of the service contract, whichever is earlier). If foreign exchange is not realised within the prescribed time, the exporter is required to pay IGST along with interest on the value of the export invoice. Extensions can be requested from the RBI under FEMA provisions

Yes. There is no minimum period of GST registration required before filing an LUT. A newly registered GST exporter can file an LUT immediately upon obtaining their GSTIN — even before making their first export supply. In fact, it is strongly recommended for new exporters to file their LUT as one of their first compliance actions after GST registration, so that all export invoices raised from the very first transaction are covered by a valid LUT. CleverCoins frequently assists newly incorporated export companies and newly GST-registered exporters with their very first LUT filing as part of a comprehensive GST export compliance setup service.

Getting your GST LUT filed by CleverCoins is simple, fast, and completely online. Visit CleverCoins.org and fill out our GST inquiry form, or call our helpline to speak directly with one of our GST export compliance specialists. Our team will immediately verify your eligibility, check your return filing compliance status, collect the necessary information and documents, prepare your Form RFD-11 application, file it on the GST portal, and deliver your LUT acknowledgement — typically within 1-2 business days of receiving complete information. We also set up annual LUT renewal reminders and can manage all your ongoing GST export compliance. With CleverCoins, your LUT is filed right, filed fast, and filed on time — every year.