Letter of Undertaking (LUT) in Form GST RFD-11 for exporters
An LUT in Form RFD-11 lets exporters and SEZ suppliers supply without paying IGST. File it each financial year, before the first export.
Short answer
A Letter of Undertaking (LUT) in Form GST RFD-11 lets a registered exporter, or a supplier to an SEZ, make zero-rated supplies without paying IGST and then claim a refund of accumulated input tax credit. It is filed online, is valid for one financial year, and must be in place before the first such supply. Anyone not prosecuted for tax evasion above ₹2.5 crore can file it.
- Due date
- Before the first export of each financial year
- Who files
- Exporters of goods or services and SEZ suppliers
- Validity
- One financial year
- Eligibility
- Not prosecuted for evasion above ₹2.5 crore
- Government fee
- Nil
- Portal
- gst.gov.in, Services, User Services
- Law
- Section 16, IGST Act; Rule 96A, CGST Rules
Why file an LUT?
Exports and supplies to SEZ units or developers are zero-rated under section 16 of the IGST Act. An exporter can either pay IGST and claim it back as a refund, or supply under bond or LUT without paying tax and claim a refund of unutilised input tax credit. The LUT route avoids blocking working capital in IGST payments.
Most exporters of services, such as software, consulting and design firms billing foreign clients, use the LUT route. Their invoices must carry the declaration that the supply is meant for export or SEZ under LUT without payment of IGST.
An LUT is not needed for exports on payment of IGST. Some exporters prefer that route when they have large input credit to use up, because the IGST paid on exports of goods is refunded automatically through customs once the shipping bill and returns match.
Who can file and who must give a bond instead?
Any registered person can furnish an LUT unless prosecuted for an offence under the CGST Act, IGST Act or earlier laws where the tax evaded exceeds ₹2.5 crore. Those who are ineligible must furnish a bond with a bank guarantee instead, which is more cumbersome.
The LUT is signed by the proprietor, a partner, a director or an authorised signatory, and needs two independent witnesses whose names, addresses and occupations are given in the form.
Conditions you accept in the LUT
By filing RFD-11 you undertake to complete the export within the time allowed and to pay IGST with interest if you do not. These conditions decide whether each supply stays zero-rated.
| Condition | Time limit under rule 96A |
|---|---|
| Goods must be exported | Within three months of the invoice date, or extended period allowed |
| Payment for services must be received in convertible foreign exchange or INR where permitted | Within one year of the invoice date, or extended period allowed |
| If not met, pay IGST | Within 15 days of expiry, with interest at 18% a year |
Data and documents for filing
The form itself is short, but keep the supporting information ready, especially for a first-time filing or when the authorised signatory has changed since the last LUT was furnished on the portal.
Exporters of goods should also check that the IEC, GSTIN and bank account linked with customs are consistent, because refund of credit later depends on matching the shipping bill data with your returns.
- Financial year for which the LUT is sought
- Names, addresses and occupations of two independent witnesses
- Self-declaration that you have not been prosecuted for evasion above ₹2.5 crore
- Import Export Code where you export goods
- Previous year's LUT ARN, if renewing
Common errors and consequences
The commonest mistake is forgetting to renew the LUT on 1 April. Exports made before the new LUT is filed are not covered, and you may have to pay IGST on them and claim a refund. Other errors include using employees who are signatories as witnesses, missing the LUT declaration on invoices, and not tracking export proceeds against the one-year limit.
The portal generates an ARN on filing, and the LUT is treated as accepted, so keep the acknowledgement with export records. Refogo's partner professionals can file your LUT for a fixed fee.
Step by step
- 1Log in to the GST portal
Go to Services, User Services, Furnish Letter of Undertaking.
- 2Select the financial year
Choose the year for which the LUT is needed, such as 2026-27.
- 3Confirm eligibility
Tick the declarations and upload a previous LUT if required.
- 4Enter witness details
Add names, addresses and occupations of two independent witnesses.
- 5Sign and file
Submit with DSC or EVC and download the ARN acknowledgement.
Related services
Sources
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Is LUT required every year?
Yes. An LUT is valid for one financial year, so file a fresh one for each year before the first zero-rated supply.
Do service exporters need an LUT?
Yes, if they want to export without paying IGST. Without an LUT, they must pay IGST and claim a refund.
Who can be a witness for an LUT?
Two independent persons whose names, addresses and occupations are given. Avoid using the signatory or a person with a conflict of interest.
What if export proceeds come after a year?
If payment for services is not received within one year or the extended period, you must pay IGST with interest within 15 days.