LUT for Exporters Under GST: How to Export Without Paying IGST
A Letter of Undertaking (LUT), filed via Form GST RFD-11, lets exporters ship goods or services without paying IGST at the time of export — instead of paying tax and later claiming a refund, which locks up working capital for weeks or months. Nearly every regular exporter files an LUT rather than paying and reclaiming.
LUT vs paying IGST and claiming refund
| Factor | With LUT | Without LUT (pay & refund) |
|---|---|---|
| Cash outflow at export | None | Full IGST paid upfront |
| Working capital impact | None | Locked until refund processes |
| Paperwork | File once a year | File refund claim per shipment |
Who is eligible
Any GST-registered exporter can file an LUT, except those prosecuted for tax evasion above ₹2.5 crore. Most exporters — goods or services — qualify without needing a bank guarantee (which was required under the earlier bond-based system).
How to file
- Log in to the GST portal and navigate to Services → User Services → Furnish Letter of Undertaking
- Fill Form RFD-11 with export turnover details and witness information
- Submit with digital signature or EVC
- Download the acknowledgement (ARN) — the LUT is typically accepted instantly online
Validity and renewal
An LUT is valid for one financial year and must be renewed before 1 April each year. If you ship even one export under an expired LUT, you must pay IGST on that shipment and claim a refund instead.
Exporting goods or services? Our GST team files and renews your LUT so shipments never get delayed.