Export Without IGST – GST LUT Filing

File your GST LUT online to export goods or services without payment of IGST. Get expert assistance and seamless compliance for the financial year.

LUT Filing for Exporters

Are you an exporter looking to simplify your operations and improve cash flow? The Letter of Undertaking (LUT) is an essential document under GST that allows you to export goods and services without paying Integrated Goods and Services Tax (IGST) at the time of supply. This means no blocked working capital, no refund follow-ups – just seamless, tax-free exports.

BizReady handles the entire LUT filing process for you – from document preparation to online submission of Form GST RFD-11 – ensuring accuracy and compliance at every step.

What is LUT in GST?

LUT stands for Letter of Undertaking. It is a declaration filed by exporters under the GST framework that allows them to export goods or services without the obligation of paying IGST upfront. Instead of paying tax and then claiming a refund, the LUT enables zero-rated exports from the outset – keeping your funds free and your operations efficient.

The LUT is filed using Form GST RFD-11 on the GST portal and is mandatory for all registered taxpayers engaged in the export of goods or services.

Eligibility Criteria for LUT Filing

Who can file: Any registered taxpayer engaged in exporting goods or services can file an LUT, provided they have not been prosecuted for tax evasion exceeding ₹2.5 crore.

Key requirements:

Intent to Supply: The applicant must intend to supply goods or services within India, to foreign countries, or to Special Economic Zones (SEZs).

GST Registration: The entity must be registered under the GST framework.

Tax-Free Supply: The purpose of the LUT is to enable supply of goods or services without payment of integrated tax.

LUT vs. Bond

An LUT is valid for one financial year and must be renewed by filing a fresh LUT for each subsequent year. If the conditions outlined in the LUT are not met within the designated timeframe, the privileges are revoked and the exporter must furnish a bond instead.

When do LUTs and bonds apply?

Zero-Rated Supply to SEZ: Exporting to Special Economic Zones without IGST payment.

Goods Export: Exporting goods outside India without IGST payment.

Service Export: Providing services to foreign clients without IGST payment.

Entities that are ineligible for LUT can still export without IGST by furnishing a bond on non-judicial stamp paper, accompanied by a bank guarantee covering the anticipated tax liability.

Documents Required for LUT Filing

LUT Cover Letter – A request letter signed by an authorised person.

Copy of GST Registration – Proof of active GST registration.

PAN Card of the Entity – For identification purposes.

KYC of Authorised Person – Identity and address proof of the authorised signatory.

GST RFD-11 Form – The prescribed application form for LUT.

Copy of IEC Code – Import Export Code, if involved in exports.

Cancelled Cheque – From the entity's associated bank account.

Authorisation Letter – Granting signing power to the authorised signatory.

Advantages of Filing LUT for Exporters

Tax-Free Exports: Export goods and services without paying IGST upfront. No need to pay tax first and then chase refunds for zero-rated supplies.

Simplified Compliance: Avoid the complexities of claiming tax refunds or following up with tax authorities. Filing an LUT saves significant time and operational effort.

Unblocked Working Capital: Funds that would otherwise be locked up as IGST payments remain available for business operations. This is especially valuable for SMEs managing tight cash flows.

Valid for a Full Year: Once filed, the LUT is valid for the entire financial year – minimising repetitive filings and letting you focus on growing your export business.

Key Points to Remember

Validity: An LUT is valid for one financial year from the date of submission. A fresh LUT must be filed for each new financial year.

Conditional Acceptance: The LUT comes with specific conditions. Failure to meet them may result in revocation of privileges, requiring the exporter to furnish a bond.

Official Letterhead: The LUT submission must be on the registered entity's official letterhead.

Prescribed Form: The LUT must be filed through the official GST RFD-11 form by an authorised person – such as a Managing Director, Company Secretary, partner (in a partnership firm), or proprietor.

Bank Guarantee Limit (for Bonds): If a bond is required instead of an LUT, the accompanying bank guarantee should not exceed 15% of the bond amount. The jurisdictional GST Commissioner may waive this requirement.

Alternative for Ineligible Entities: Those who cannot file an LUT can still furnish a bond with a bank guarantee to export without IGST payment.

How BizReady Simplifies LUT Filing

End-to-End Support: From document collection to online submission of GST RFD-11, our team handles every step of the process.

Expert Guidance: Our Chartered Accountants understand the nuances of GST export regulations and ensure your LUT is filed accurately and on time.

Annual Renewal Reminders: We track your LUT validity and remind you before it expires, so your export operations are never interrupted.

Transparent Pricing: No hidden fees – you know the exact cost before we start.

Backed by Professionals: BizReady's GST services are powered by the tax experts at LexVerge LLP, bringing deep expertise in international trade compliance to your doorstep.