Export Without Paying IGST: File Your GST LUT Fast
Save massive amounts of working capital. Let EasyBiz360 file your Letter of Undertaking (Form RFD-11) so you can legally export goods and services with Zero IGST.
Important: Annual Renewal Required
A Letter of Undertaking is only valid for one Financial Year (April 1st to March 31st). If you are an active exporter, you must renew and file a new LUT before March 31st every year to ensure uninterrupted zero-rated exports.
Why You Need a Letter of Undertaking (LUT)
Under the GST regime, exporting without an LUT means you must pay IGST out of pocket and claim it back later. An LUT removes this burden completely.
Unblock Working Capital
Without an LUT, you must pay 18% (or applicable) IGST upfront and wait months for a refund. With an LUT, you pay ₹0, keeping your cash flow entirely free for business growth.
Smooth SEZ Supplies
LUT isn’t just for international exports! Supplying goods or services to Special Economic Zones (SEZs) within India is also zero-rated if you have an active LUT.
Skip the Refund Hassle
Filing for an IGST refund requires detailed documentation, shipping bill matching, and dealing with customs servers. An LUT bypasses the refund process entirely.
Eligibility & Requirements for LUT
Any GST-registered person who wishes to supply goods or services for export without paying integrated tax can file an LUT, provided they meet the basic criteria.
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Clean Record: The applicant must not have been prosecuted for tax evasion exceeding ₹2.5 Crores under the CGST/IGST Act.
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Independent Witnesses: You will need the names, occupations, and addresses of two independent witnesses for the undertaking.
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Valid GSTIN: Your GST registration must be active. Suspended or cancelled GSTINs cannot apply for LUT.
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Authorized Signatory: The LUT must be electronically signed using the DSC or EVC of the primary authorized signatory.
Understanding Form RFD-11 & Legal Commitments
Filing an LUT via Form GST RFD-11 is essentially a legally binding promise made to the Government of India. You are declaring that you will fulfill the export of goods or services within a specified timeframe.
What happens if you fail to export?
When you file an LUT, you commit to two primary timelines:
- For Goods: The goods must be physically exported out of India within 3 months from the date of the export invoice.
- For Services: The payment (in convertible foreign exchange or Indian Rupees wherever permitted by RBI) must be received within 1 year from the date of the export invoice.
If you fail to meet these deadlines, the LUT privilege is revoked. You will be forced to pay the applicable IGST on those invoices, along with interest at 18% per annum calculated from the invoice date. At EasyBiz360, we not only file your LUT but advise you on compliance to ensure you never face these penalties.
Frequently Asked Questions
Common questions about the Letter of Undertaking process.
Is it mandatory to file an LUT for export?
No, it is not mandatory. However, if you choose not to file an LUT, you must pay IGST on your exports and subsequently claim a refund. Most businesses file an LUT to avoid the cash flow blockage and administrative burden of claiming refunds.
Do I need to submit physical documents to the GST office?
No. The entire process of filing Form RFD-11 for the Letter of Undertaking has been made completely online by the GST department. No physical visit or document submission is required.
How long does it take to get the LUT approved?
Once submitted electronically on the GST portal, the Application Reference Number (ARN) is generated immediately. The LUT is considered accepted the moment the ARN is generated, and you can start exporting immediately.
Do I need a separate LUT for different states/branches?
If your branches are registered under different GSTINs in different states, you must file a separate LUT for each GSTIN that is engaged in export activities.
I provide software services to US clients. Do I need an LUT?
Yes! Export of services (like IT, consulting, or freelancing for foreign clients) is also considered a zero-rated supply. To avoid charging IGST to your foreign clients or paying it from your own pocket, you must file an LUT.
File Your GST LUT Instantly
Stop paying unnecessary taxes on your exports. Let our tax experts file your Form RFD-11 accurately and keep your working capital free. Fill out the form below to begin.