LUT (Letter of Undertaking) in GST: Eligibility & Step-by-Step Online Filing
Exporters in India can ship goods and services without paying IGST upfront by furnishing a Letter of Undertaking (LUT). This preserves working capital by avoiding the pay-tax-then-claim-refund cycle. This guide explains what an LUT is, who is eligible, and how to file it online on the GST portal.
What is an LUT under GST?
Under Section 16 of the IGST Act, 2017, the export of goods and services is treated as a zero-rated supply. Exporters have two options: export on payment of IGST and then claim a refund, or export without payment of IGST under a bond or Letter of Undertaking and claim a refund of unutilised input tax credit.
The LUT is furnished in Form GST RFD-11 under Rule 96A, in which the exporter declares that they will fulfil all the requirements prescribed under GST while exporting without paying IGST. Filing is now done entirely online.
Who is eligible to file an LUT
Any GST-registered person can furnish an LUT (Form GST RFD-11) to export without paying integrated tax if they intend to supply goods or services abroad or to a Special Economic Zone (SEZ). All registered exporters qualify except those prosecuted for an offence where the tax evaded exceeds Rs. 250 lakh. A simple self-declaration that the exporter has not been so prosecuted is sufficient.
How to file an LUT online
- Log in to the GST Portal, go to the Services tab, select User Services, then Furnish Letter of Undertaking (LUT)
- Select the applicable financial year from the dropdown
- If you previously furnished an LUT manually, upload it (PDF or JPEG, max 2 MB)
- Complete the fields on the GST RFD-11 form and enter the details of two independent witnesses
- Enter the place of filing, click Save, then Preview to check accuracy
- Sign and file using DSC or EVC (companies and LLPs must use DSC)
- The system generates an ARN; download the acknowledgement
Validity of an LUT
An LUT is valid for the entire financial year in which it is furnished, and a fresh LUT must be filed each year. If goods are not exported within three months of the invoice date, or export service payment is not received within one year, the exporter must pay the applicable IGST with 18% interest within 15 days. Non-compliance leads to withdrawal of the LUT facility until dues are paid.
Benefits of filing an LUT
Furnishing an LUT lets exporters supply goods and services without paying IGST, so no tax gets blocked while waiting for a refund. This is especially valuable for SMEs, where working capital is tight. Once filed, the LUT covers the whole financial year, and if a tax officer neither processes the application nor issues a clarification notice within three working days, the application is deemed approved.
Frequently asked questions
Who can use an LUT? Any registered taxpayer exporting goods or services, except those prosecuted for tax evasion of Rs. 2.5 crore or more.
Who signs the LUT? The primary authorised signatory or another authorised representative — such as a working partner, managing director or proprietor — via DSC or EVC.
How do I know filing is complete? The system generates an ARN and acknowledgement, and you are informed by SMS and email; the acknowledgement can be downloaded as a PDF.
Need expert help?
TAXAJ’s Chartered Accountants, Company Secretaries and legal team handle this end-to-end for businesses and individuals across Delhi, Bengaluru, Goa and Bihar. Ask a question in our Community or get in touch with TAXAJ.
This guide is general information and is not a substitute for professional advice. Rules, rates and deadlines can change — verify the latest position on the relevant official portal or consult a professional before acting.
