Mandatory statutory legal declaration filed annually under Rule 96A of the Central Goods and Services Tax Rules, 2017 (Form GST RFD-11) via the GST portal, permitting registered exporters of goods and services to export outside India or supply to SEZ units without paying Integrated GST (IGST), preserving critical working capital
A GST LUT is strictly valid for ONE Financial Year (e.g., from April 1 to March 31). An LUT filed for FY 2025-26 expires on March 31, 2026. Exporters MUST file a fresh RFD-11 on the GST portal prior to commencing exports in the new financial year (ideally in March or early April) to avoid being forced to pay 18% IGST.
💡 A GST Letter of Undertaking (LUT), submitted in Form GST RFD-11, is a formal commitment by an exporter to the Government of India promising that all goods will be exported within 3 months and all service proceeds will be realized in convertible foreign exchange within 9 months under FEMA regulations. Filing an LUT allows you to make 'Zero-Rated Supplies' without paying 18% Integrated GST upfront, saving massive working capital and eliminating the need to wait months for government tax refunds.
Comparing export taxation mechanisms under Indian GST laws.
| Parameter | Export Under LUT (RFD-11) | Export With Payment of IGST | Export Under Bond |
|---|---|---|---|
| Working Capital Impact | Zero cash outflow; no tax paid at time of export | Heavy cash blockage; must pay 18% IGST upfront | Zero cash outflow, but requires physical bank guarantee |
| Refund Procedure | Can claim refund of unutilized Input Tax Credit (ITC) | Automatic refund of paid IGST via ICEGATE-Customs | Can claim refund of accumulated ITC on inputs |
| Eligibility | All registered exporters not convicted of tax evasion >₹2.5 Cr | All registered taxpayers (except restricted goods) | Only for exporters who have been prosecuted for tax evasion |
| Filing Complexity | 100% online on GST portal; instant approval in 5 mins | Requires reporting on shipping bills and GSTR-3B | Requires non-judicial stamp paper, bank guarantee, and physical visit |
Online filing on the GST portal takes under 10 minutes; the Application Reference Number (ARN) and approved LUT Acknowledgment are generated instantly upon submission.
Zero government fee (100% FREE) to file Form GST RFD-11 on the GST portal.
Any business registered under GST (regular taxpayer) who has not been prosecuted for any tax evasion offense involving an amount exceeding ₹250 Lakhs under the CGST Act or any existing laws.
Exporters of goods (manufacturers, merchant exporters), exporters of services (IT software development companies, freelancers, digital marketing agencies, consultants), and businesses supplying goods or services to Special Economic Zone (SEZ) developer/units seeking zero-rated supply without paying upfront tax.
Visit gst.gov.in and sign in using your registered username, password, and captcha.
Go to 'Services' > 'User Services' > 'Furnish Letter of Undertaking (LUT)'.
Select the relevant Financial Year for which the LUT is being applied (e.g., 2026-2027) from the dropdown.
Check the three mandatory checkboxes: (1) Export goods within 3 months of invoice date, (2) Realize export proceeds in convertible foreign exchange within 9 months as per FEMA, and (3) Pay GST along with 18% interest if export conditions are violated.
Enter the Name, Occupation, and full Residential / Business Address of two independent adult witnesses.
Select the authorized signatory from the dropdown, enter the place of filing, and sign using Digital Signature Certificate (DSC) for companies/LLPs or Aadhaar OTP (EVC) for proprietorships.
The system validates the submission instantly and displays an Application Reference Number (ARN). The LUT is deemed approved immediately without manual tax officer intervention.
Filing an LUT is step one; reporting export invoices accurately is required to avoid tax notices.
Every export invoice must carry the statutory endorsement: 'Supply Meant for Export under Letter of Undertaking without Payment of Integrated Tax'.
Enter invoice numbers, shipping bill details, port codes, and select 'Zero-Rated - Without Payment of Tax' in Table 6A of your monthly GSTR-1.
Enter the total turnover of zero-rated exports under Table 3.1(b) 'Outward taxable supplies (zero rated)' with tax value as zero.
Obtain Foreign Inward Remittance Advice (FIRA / BRC) from your authorized dealer bank proving receipt of funds in convertible foreign exchange within 9 months.
Download the official LUT Acknowledgment containing your ARN to provide to customs clearing agents and banks.
Log into gst.gov.in, navigate to 'Services' > 'User Services' > 'View My Submitted LUT'.
Select the Financial Year and click 'Search'. The portal displays your submitted Form GST RFD-11 entry.
Click on the hyperlinked ARN number (e.g., AD270426001234Z).
Click 'Download' to retrieve the official PDF containing your complete declaration, witness details, and digital timestamp.
Remedies for common portal glitches during RFD-11 submission.
| Error / Portal Prompt | Root Cause | Actionable Remedy |
|---|---|---|
| Portal error: 'Previous LUT exists for selected FY' | Already filed LUT for the ongoing financial year | Check 'View My Submitted LUT'; if an LUT already exists for the selected year, you cannot file another one. Download the existing acknowledgment. |
| DSC signing fails with 'Token Not Registered' error | emSigner utility and browser certificate settings | Restart the emSigner utility as administrator, clear browser cache, and ensure the authorized signatory's PAN matches the DSC token. |
| Foreign client payment delayed beyond 9 months due to commercial dispute | FEMA Regulation 9 and RBI Master Directions | Apply to your Authorized Dealer (AD Category-I) bank for an official 'Extension of Time' for realization of export proceeds under RBI guidelines to prevent LUT default. |
Yes. Any GST-registered entity—including individual freelancers, proprietary firms, partnerships, LLPs, and companies—exporting software, consulting, content, or design services outside India can file an LUT on gst.gov.in.
Under Rule 96A(1)(a) of the CGST Rules, if goods are not exported within 3 months from the date of the invoice, the exporter must pay the applicable Integrated GST (IGST) along with 18% annual interest within 15 days, failing which LUT facilities may be revoked.
No. Under Circular No. 8/8/2017-GST, a Letter of Undertaking does NOT require any bank guarantee or physical bond. A bank guarantee is only required if the taxpayer has been prosecuted for a tax offense exceeding ₹2.5 Crores, in which case they must execute a physical Export Bond with a 15% bank guarantee.
Yes. Supplies made to a Special Economic Zone (SEZ) developer or an SEZ unit are legally treated as 'Zero-Rated Supplies' under Section 16 of the IGST Act and can be supplied without payment of tax under an active GST LUT.
Statutory rules governing refund of integrated tax paid on export of goods or services under bond or letter of undertaking.
Master circular on export refund procedures, LUT verification, and FEMA time realization.
Goods and Services Tax registration for businesses
10-digit code for import/export businesses
Legal document confirming the formation of a company (Private Ltd, Public Ltd, LLP)
Official statutory recognition certificate issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, granting eligible private limited companies and LLPs access to 3-year Section 80-IAC tax holidays, angel tax exemptions, 80% patent rebates, and Startup India Seed Fund Scheme (SISFS) grants
Official statutory orders issued by the GST Proper Officer under Section 29 and Section 30 of the CGST Act, 2017, comprising Form GST REG-19 (Order of Cancellation of Registration) and Form GST REG-22 (Order of Revocation of Cancellation), formally terminating or restoring a taxpayer's active GSTIN
Governed by Section 16 of the Integrated Goods and Services Tax Act, 2017 (IGST Act) and Rule 96A of the CGST Rules, 2017.
GST Common Portal - Services Dashboard →