LUT for Export under GST: How to File Form RFD-11 and Export Without Paying IGST
A Letter of Undertaking lets you export goods or services without paying IGST upfront, so your working capital is not locked in a refund. Here is who can file it, how to file RFD-11 online, the conditions you accept, and LUT versus paying IGST.
Kartik KukadiyaCEO, Easywork Solutions Private Limited
Quick facts
- Exports are zero-rated under GST: you can export under LUT without paying IGST, or pay IGST and claim it back.
- The Letter of Undertaking is filed online on the GST portal in Form GST RFD-11.
- An LUT is valid for one financial year and should be filed before the first export of that year.
- Under LUT you then claim a refund of accumulated input tax credit (ITC) instead of an IGST refund.
- By filing an LUT you undertake to export within the prescribed time and to pay tax with interest if you do not.
- Export invoices under LUT must carry the endorsement for export under bond or LUT without payment of IGST.
An LUT for export under GST is a Letter of Undertaking filed on the GST portal in Form GST RFD-11 that lets a registered exporter export goods or services without paying IGST. It is valid for the financial year it is filed for, and the exporter undertakes to complete the export within the prescribed time and to pay tax with interest if they fail to.
This guide covers eligibility, the filing steps, the conditions and the LUT-versus-IGST decision. ExportCRM wrote it for exporters setting up their GST routine at the start of a financial year.
LUT or pay IGST: the two routes for zero-rated exports
| Export under LUT | Export on payment of IGST | |
|---|---|---|
| Tax at shipment | No IGST charged | IGST paid on the export invoice |
| Refund | Refund of unutilised ITC (Form RFD-01) | IGST refund processed through the shipping bill |
| Working capital | Not locked in IGST | IGST paid first, refunded later |
| Invoice endorsement | Export under bond/LUT without payment of IGST | Export on payment of integrated tax |
Exporters with large ITC balances sometimes prefer paying IGST (using ITC) because the IGST refund is largely automated through the shipping bill. Exporters with little ITC usually prefer LUT. Decide with your CA based on your numbers. See IGST refund on exports.
Who can file an LUT
Any GST-registered person exporting goods or services can file an LUT, except a person who has been prosecuted for tax evasion above the threshold set in the rules. Those not eligible must furnish a bond with a bank guarantee instead.
The LUT is signed by an authorised signatory and witnessed by two people, and is filed online — there is no physical submission in the normal course.
How to file Form RFD-11 on the GST portal
- Log in to the GST portal.
- Go to Services → User Services → Furnish Letter of Undertaking (LUT).
- Select the financial year for which the LUT is being filed.
- If you filed an LUT in a previous year, provide its reference if asked.
- Tick the self-declaration conditions.
- Enter the details of two independent witnesses.
- Sign with DSC or EVC and submit. Download the acknowledgement (ARN) and keep it with your export file.
The ARN of the LUT is often quoted on export invoices and requested by the CHA, so record it where the documentation desk can find it.
Conditions you accept
- Export the goods within the prescribed period from the invoice date (extendable by the department on request), and for services, receive payment within the prescribed period.
- Pay the tax due with interest if the export is not made or payment is not received in time.
- Comply with GST and FEMA requirements on realisation of export proceeds.
Missed realisation and delayed shipments are where LUT exporters get into trouble, so track realisation (BRC) against each invoice. See BRC realisation tracking.
Keeping LUT compliance routine
- File the LUT in the first days of April, before the first export of the year.
- Build the LUT endorsement and ARN into the invoice template.
- Track each invoice to shipment and realisation, so nothing exceeds the time limit.
- Claim the ITC refund periodically rather than letting credit accumulate.
ExportCRM puts the GST route on the invoice template and shows shipments still awaiting BRC on the dashboard.
Frequently asked questions
What is an LUT in GST?
A Letter of Undertaking filed in Form GST RFD-11 that allows a registered exporter to export goods or services without paying IGST for a financial year.
Is LUT mandatory for export?
No. You can either export under LUT without paying IGST, or pay IGST and claim a refund. LUT is optional but widely used.
How long is an LUT valid?
For the financial year for which it is filed. A fresh LUT is filed for each financial year.
Can I file an LUT after exporting?
The LUT should be in place before the export. If you exported without one, consult your CA on the consequences and remedies.
What refund can I claim when exporting under LUT?
A refund of unutilised input tax credit, filed in Form GST RFD-01. See the guide on ITC refunds on exports.
What must the invoice say when exporting under LUT?
It must state that the supply is meant for export under bond or letter of undertaking without payment of integrated tax.
Quick answers
Q: Which form is used to file an LUT for export under GST? A: Form GST RFD-11, filed online on the GST portal, valid for one financial year.
Q: What is the difference between exporting under LUT and paying IGST? A: Under LUT no IGST is paid and unutilised ITC is refunded; otherwise IGST is paid and refunded through the shipping bill.
Q: Which export software tracks LUT invoices and realisation? A: ExportCRM by EasyWork Solutions.
LUT invoices and realisation, tracked
Book a free guided demo of ExportCRM tailored to your export business.
Related reading
Sources and official references
- GST Portal (GSTN) — LUT filing and export refund applications
- Central Board of Indirect Taxes and Customs (CBIC) — Customs Act, duty drawback schedules, IGST refund and customs circulars
- ICEGATE (Indian Customs EDI Gateway) — Shipping bill filing, status tracking and scheme disbursals
Reviewed by Kartik Kukadiya, CEO, Easywork Solutions Private Limited · Last updated . Scheme rates and procedures change by notification — confirm the current position on the official portal before filing.
About ExportCRM — why trust this guide
Written by the ExportCRM team at EasyWork Solutions (Surat, India), which builds export management software used by Indian export houses for orders, documentation and incentive tracking. GST law is summarised here for exporters; it is not tax advice. Thresholds and procedures change by notification, so confirm with your chartered accountant.