A Letter of Undertaking (LUT) is one of the most important compliance documents for exporters and businesses making zero-rated supplies under India’s Goods and Services Tax (GST) regime. Filing an LUT allows eligible taxpayers to export goods or services, or supply to Special Economic Zones (SEZs), without paying Integrated GST (IGST) upfront. This 2026 FAQ-style guide explains what an LUT is, who needs it, how to file Form GST RFD-11 on the GST portal, its validity, required documents, and the consequences of not filing on time.<\/p>\n
An LUT, or Letter of Undertaking, is a declaration furnished by a registered taxpayer stating that they will fulfil all requirements prescribed under GST law while making exports or zero-rated supplies without payment of IGST. It is submitted electronically in Form GST RFD-11<\/strong> on the GST common portal.<\/p>\n Under Section 16 of the IGST Act, exports and supplies to SEZ units or developers are treated as “zero-rated supplies.” A taxpayer making such supplies has two options: pay IGST and later claim a refund, or supply without paying IGST by furnishing an LUT or a bond. The LUT route is preferred because it avoids blocking working capital in tax payments that would otherwise have to be refunded.<\/p>\n Any GST-registered person who intends to supply goods or services without paying IGST should file an LUT. This typically includes:<\/p>\n If you do not furnish an LUT, you must pay IGST on every zero-rated supply and then apply for a refund, which is more time-consuming and cash-intensive.<\/p>\n As per the current rules, almost all registered exporters can file an LUT. A taxpayer is eligible provided they have not been prosecuted for any offence under the CGST Act, the IGST Act, or any existing tax law where the amount of tax evaded exceeds Rs 2.5 crore. Any registered person intending to supply goods or services for export, to SEZs, or otherwise without payment of integrated tax can furnish the LUT.<\/p>\n If a taxpayer is not eligible to file an LUT (for example, due to prosecution above the threshold), they must furnish a bond along with a bank guarantee instead.<\/p>\n An LUT is valid for one financial year. A fresh LUT must be filed for each financial year in which the taxpayer wishes to continue exporting or making zero-rated supplies without payment of IGST. For example, an LUT filed for FY 2026-27 covers supplies made from 1 April 2026 to 31 March 2027.<\/p>\n It is best practice to file the LUT at the very beginning of the financial year (in April) so that exports are not interrupted. If the goods or services are not exported within the timelines prescribed under the rules and the conditions of the LUT are not met, the benefit of exporting without IGST may be withdrawn until the LUT is restored.<\/p>\n Filing an LUT is a fully online process. Follow these steps:<\/p>\n No physical submission to the GST office is required once the LUT is filed and acknowledged online.<\/p>\n The online LUT filing is largely declaration-based, but you should keep the following ready:<\/p>\n If you make zero-rated supplies without a valid LUT in place, the following consequences apply:<\/p>\n Timely filing of the LUT each financial year is therefore essential to keep exports smooth and tax-efficient.<\/p>\n Both an LUT and a bond allow zero-rated supplies without upfront IGST, but they apply to different taxpayers.<\/p>\n For most compliant exporters, the LUT is clearly the easier and cheaper option.<\/p>\n It is not strictly mandatory, but without an LUT you must pay IGST on exports and claim a refund later. To export without paying IGST, an LUT is required.<\/p>\n Yes. An LUT is valid only for one financial year and must be renewed at the start of each new financial year to continue the benefit.<\/p>\n No, there is no government fee to file Form GST RFD-11 on the GST portal. Professional assistance charges, if you engage a consultant, are separate.<\/p>\n Yes. There is no turnover threshold for filing an LUT. Eligibility depends on not having been prosecuted for tax evasion exceeding Rs 2.5 crore under GST or earlier laws.<\/p>\n If exports are not completed within the timeline prescribed under the rules, the taxpayer becomes liable to pay IGST along with interest, and the LUT benefit may be withdrawn until compliance is restored.<\/p>\n Yes. Exporters of services who receive payment in convertible foreign exchange, or in Indian rupees where the RBI permits, can file an LUT for zero-rated supply of services.<\/p>\n The LUT is signed using a Digital Signature Certificate (DSC) of the authorised signatory, or verified through EVC using an OTP sent to the registered mobile number and email.<\/p>\nWho Needs to File an LUT?<\/h2>\n
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Eligibility to File an LUT<\/h2>\n
Validity of an LUT<\/h2>\n
How to File Form GST RFD-11 on the GST Portal<\/h2>\n
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Documents Required for Filing an LUT<\/h2>\n
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Consequences of Not Filing an LUT<\/h2>\n
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Bond vs LUT: What Is the Difference?<\/h2>\n
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\n Basis<\/th>\n Letter of Undertaking (LUT)<\/th>\n Bond<\/th>\n<\/tr>\n \n Who files<\/td>\n Eligible exporters and zero-rated suppliers<\/td>\n Taxpayers not eligible for an LUT<\/td>\n<\/tr>\n \n Bank guarantee<\/td>\n Not required<\/td>\n Usually required along with the bond<\/td>\n<\/tr>\n \n Format<\/td>\n Filed online in Form GST RFD-11<\/td>\n Executed on stamp paper and submitted<\/td>\n<\/tr>\n \n Validity<\/td>\n One financial year<\/td>\n As specified in the bond terms<\/td>\n<\/tr>\n \n Convenience<\/td>\n Simple, fully online, no cost of guarantee<\/td>\n More paperwork and cost involved<\/td>\n<\/tr>\n<\/table>\n Frequently Asked Questions (FAQs)<\/h2>\n
1. Is filing an LUT mandatory for exporters?<\/h3>\n
2. Do I need to file a new LUT every year?<\/h3>\n
3. Is there any government fee for filing an LUT?<\/h3>\n
4. Can a business with any turnover file an LUT?<\/h3>\n
5. What happens if goods are not exported within the prescribed time after filing an LUT?<\/h3>\n
6. Can services exporters also file an LUT?<\/h3>\n
7. How is the LUT signed and verified?<\/h3>\n
8. Where can I get help filing my LUT?<\/h3>\n