An exporter has two ways to handle IGST: pay it on the export invoice and claim it back as a refund, or file a Letter of Undertaking and never pay it in the first place. The second is almost always better, because the first parks your working capital with the department for anywhere between two and six months.
Starting at
₹1,499 onwards
LUT (RFD-11)
Exporters of goods or services, SEZ suppliers
Timeline
Filed same day; acknowledgment immediate
Under Section 16 of the IGST Act, exports and supplies to a Special Economic Zone are zero-rated. Section 16(3) gives the supplier a choice: supply on payment of integrated tax and claim a refund, or supply under bond or Letter of Undertaking without payment of integrated tax and claim a refund of unutilised input tax credit. Rule 96A of the CGST Rules sets out the LUT mechanism - the undertaking is furnished in Form GST RFD-11 on the GST portal, and it binds you to pay the tax with interest if the export proceeds or the goods do not materialise within the prescribed period.
TL;DR
An LUT costs nothing in government fees and takes a day to file. It is valid for one financial year and does not renew automatically. File in March or the first week of April - exporters who file in July after shipping for three months are exposed for those three months.
Form GST RFD-11
The Letter of Undertaking furnished on the GST portal, allowing export without payment of IGST.
Rule 96A
The CGST rule setting out the LUT mechanism and the three undertakings the exporter gives.
Zero-rated supply
Exports and SEZ supplies under Section 16 of the IGST Act - taxable at nil, with input credit preserved.
Bond with bank guarantee
The alternative to an LUT, required where the exporter has been prosecuted for evasion exceeding ₹250 lakh.
Notification 37/2017-Central Tax extended the LUT facility to all registered persons who intend to export.
Required where the exporter has been prosecuted for an offence where the tax evaded exceeds ₹250 lakh.
Filing an LUT is not a formality - three binding conditions attach to it.
01
Log in to the GST portal and go to Services, then User Services, then Furnish Letter of Undertaking. Select the financial year.
02
Upload the previous year's LUT if any, accept the three undertakings under Rule 96A, and enter the details of two witnesses with their addresses and occupations.
03
Sign with DSC or EVC and submit. There is no departmental approval step - the LUT is accepted on filing.
04
Download the acknowledgment with the ARN. Keep it with your export documentation, because customs and banks will ask for it.
Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.
Still unsure if LUT (RFD-11) is right for your case? Book a free 20-minute consult - a senior CA / CS will walk you through your specifics.
Still have questions?
Book a free 20-minute consult with a senior partner - we'll walk through your case and outline next steps.
Talk to a partner →A senior CA / CS will get on a call with you, confirm scope and start the work - usually within 24 hours.
