GST Compliance Management

GST LUT: Export Without Paying Tax

If your business exports goods or services out of India, you are entitled to "Zero-Rated" tax benefits. However, by default, the government requires you to pay Integrated GST (IGST) upfront on all exports and then endure a lengthy process to claim a refund. This severely blocks your working capital.

The solution? A Letter of Undertaking (LUT). At The Online Tax, we file your Form GST RFD-11 instantly, allowing you to legally export goods or software services without paying a single rupee of IGST upfront. Keep your cash flow healthy and let our experts handle your export compliance so you can focus on the global market.

File Your LUT Online

CHECK ELIGIBILITY

Who Can File an LUT?

The LUT facility is a major relief for exporters, but the government restricts it to taxpayers with a clean legal record to prevent tax evasion.

You CAN File an LUT If:

You Export Goods: Shipping physical products to international buyers outside India.
You Export Services: Freelancers, IT agencies, or consultants providing services to clients located abroad and receiving payment in foreign convertible currency.
You Supply to SEZs: Businesses supplying goods or services to a Special Economic Zone (SEZ) developer or an SEZ unit within India.
You are GST Registered: You must possess a valid 15-digit GSTIN to apply for the LUT.

You CANNOT File an LUT If:

Prosecuted for Tax Evasion: The taxpayer has been prosecuted under the CGST Act, IGST Act, or any other existing law where the amount of tax evaded exceeds ₹250 Lakhs (₹2.5 Crores).
Alternative Required: In such cases where the taxpayer is banned from filing an LUT, they must furnish an Export Bond accompanied by a Bank Guarantee to export without paying upfront IGST.

Required Documents for GST RFD-11 LUT Form

DOCUMENTATION

Simple & Paperless Filing

The entire LUT process is executed electronically on the GST Portal. We just need a few basic details to generate your ARN (Application Reference Number) and secure your export privileges instantly.

GST Registration

Your valid GSTIN login credentials so our team can file Form RFD-11 on your behalf.

Witness Details

Names, occupations, and addresses of two independent witnesses to digitally sign the undertaking.

Authorized Signatory

The Aadhaar OTP or Digital Signature Certificate (DSC) of the authorized director or proprietor.

IEC Code (If Goods)

If exporting physical goods, you should have your Import Export Code (IEC) linked to your PAN.

CLARIFICATIONS

Frequently Asked Questions

Answers regarding LUT validity, renewals, and working capital benefits.

An LUT is valid for exactly one financial year. It expires on the 31st of March every year. You must proactively file a new LUT for the upcoming financial year before April 1st to ensure your export invoices continue to be processed without IGST.

Yes! Exporting IT services or software development is treated the same as exporting physical goods. If you are registered for GST and invoice clients in the US, UK, or anywhere outside India, filing an LUT allows you to generate those invoices with 0% IGST, keeping your pricing competitive.

If you do not have an active LUT at the time of export, you are legally required to charge 18% (or the applicable rate) IGST on your export invoice and pay it out of your own pocket to the government. After exporting, you must file a separate, lengthy refund application to get that money back, which severely impacts your cash flow.

No, an LUT does not require any bank guarantee or blocked funds. It is simply a formal promise to the government that you will complete the export within the specified timeframe. A bank guarantee is only required if you are banned from filing an LUT and must file an Export Bond instead.

Once you generate an invoice under an LUT, you must export the physical goods within 3 months from the date of invoice. For export of services, you must receive the payment in convertible foreign exchange within 1 year from the date of the invoice. If you fail, you will have to pay the IGST along with 18% interest.

gst lut form