What is a GST LUT and why do I need one?
A GST LUT (Letter of Undertaking) is filed in Form RFD-11 and lets a registered exporter supply goods or services outside India, or to an SEZ, without paying IGST on the invoice. Without it, you'd need to pay IGST on every export and then apply separately for a refund — which ties up working capital for months.
Who is eligible to file a GST LUT?
Any GST-registered exporter or SEZ supplier can file an LUT, with one exception: anyone prosecuted for tax evasion exceeding ₹2.5 crore under the CGST Act, IGST Act, or an earlier tax law is not eligible and must furnish a bond with a bank guarantee instead.
How long is a GST LUT valid, and when do I need to renew it?
An LUT is valid for one financial year (1 April to 31 March) and does not auto-renew. You need to file a fresh LUT before the new financial year begins — by 31 March — to keep exporting without paying IGST from day one of the new year.
What happens if I export without filing an LUT?
You can still export, but you'll need to pay IGST on the invoice upfront and then file a separate refund application (Form RFD-01) to claim it back. This is legal but slower, and locks up cash that an LUT lets you avoid paying in the first place.
Is there a government fee to file a GST LUT?
No. Filing Form RFD-11 on the GST portal carries no government fee — it's free. The only cost involved is a professional fee if you use a CA or filing service to handle eligibility checks, documentation, and submission for you.
What if I don't export within 3 months of raising the invoice?
The LUT's self-declaration requires you to complete the export within 3 months of the invoice date. If you don't, you're required to pay the IGST on that invoice along with interest at 18% per annum, calculated from the invoice date until the tax is paid.
Do I need an IEC code to file a GST LUT?
No, an IEC (Import Export Code) isn't a prerequisite for filing the LUT itself — they're separate registrations. But if you're exporting goods and don't already have one, you'll need an IEC from DGFT to actually ship internationally, so most first-time exporters get both together.
What documents do you need from me?
Your GST registration certificate, PAN, ID proof for the authorized signatory, and — for goods exporters — your IEC code if you have one. We also need names, occupations, and addresses for two witnesses, which is a standard RFD-11 requirement.
