Looking to export goods or services without paying IGST? Apply for **LUT in GST – Export Without Paying IGST** with professional assistance. Get help with documentation, filing, and compliance to ensure a smooth export process. Contact us today to simplify your GST formalities.
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Under India’s GST framework, all exports are treated as zero-rated supplies — meaning GST is charged at 0%. However, exporters still have two options for handling IGST. The first is to pay IGST and claim a refund after the export is completed. The second — and far more efficient option — is to file an LUT and export without paying any IGST at all.
The LUT in GST is filed through Form RFD-11 on the official GST portal. Once approved, it permits the exporter to raise all export invoices for that financial year with the declaration: “Supply meant for export under LUT without payment of IGST.”
For businesses that also need an IEC (Import Export Code) registration to begin exporting legally, LUT filing is the next critical step after obtaining IEC.
LUT in GST stands for Letter of Undertaking — a declaration filed by registered exporters under the gst regime that allows them to export goods or services without paying Integrated GST (IGST) at the time of export.
Under Section 16(3) of the IGST Act, 2017, exporters are given two options — either pay IGST and claim a refund later, or furnish an LUT/Bond to export on a zero-rated basis without tax payment. Filing an LUT is almost always the smarter choice as it preserves working capital.
The following registered taxpayers are eligible to furnish an LUT instead of a Bond with bank guarantee:
If you have been convicted of a tax offence or the tax evaded exceeds ₹2.5 crore, you are not eligible for the LUT route. You must furnish a
Bond with bank guarantee
instead. Consult a GST expert to assess your eligibility before applying.
Note: Exporters must also have a valid GST registration before they can file an LUT. If your business is not yet registered under GST, complete that step first.
Filing an LUT is almost always the smarter choice over paying IGST and claiming refunds. Here is why:
Without LUT, exporters must first pay IGST and later claim a refund. This process can take time. With LUT, they do not need to pay IGST at all.
Since exporters don’t pay IGST, they don’t need to claim refunds, The LUT ensures that the export transaction proceeds without tax delays.
By eliminating the need to pay taxes upfront, businesses can have more liquidity and improve their cash flow, especially for small and medium-sized enterprises (SMEs) involved in international trade.
The LUT in GST mechanism simplifies the overall export procedure by reducing paperwork and eliminating the need for tax payments on exports.
To understand LUT in GST better, we must know about zero-rated supply.
Under GST, exports are called zero-rated supplies. This means:
There are two options for exporters:
Most exporters prefer the second option because it saves time and money.
Filing your LUT on the GST portal is straightforward. Here is the complete process:
Visit gst.gov.in and log in using your GSTIN, username, and password. Ensure your account credentials are active and your GST return filings are up to date.
Go to: Services → User Services → Furnish Letter of Undertaking (LUT) from the top menu.
Choose the relevant financial year for which you are filing. LUT must be filed before starting exports in that year.
The pre-filled form appears. Accept the declaration checkbox and enter details of two independent witnesses: name, address, and occupation.
Submit using DSC (Digital Signature Certificate) or EVC (OTP verification via mobile). An ARN (Acknowledgement Reference Number) is generated instantly.
Download and save the LUT acknowledgement PDF. Customs authorities, shipping lines, and SEZ units may request this document during export clearance.
An LUT in GST is valid for one financial year (April 1 to March 31). It must be renewed every year before the new financial year begins.
| Aspect | Details |
|---|---|
Validity | One financial year — April 1 to March 31 |
Renewal Deadline | File fresh LUT before April 1 each year |
Late Filing Risk | Exports before filing date in new FY may require IGST payment |
Effect on Invoices | All export invoices must state “Supply under LUT without payment of IGST” |
Record Keeping | Retain LUT acknowledgement — shipping lines and SEZ may request it |
Skipping LUT filing has real financial consequences for exporters:
For businesses that export regularly, even a one-month delay in refund can mean lakhs of rupees blocked. Filing LUT at the start of each financial year is a zero-cost, high-impact compliance action.
If you are unsure whether your existing GST registration needs to be amended to add export activities before filing LUT, our experts can review and advise.
Running an export business involves multiple compliance layers. Explore these related services:
Our GST compliance experts handle your LUT filing end-to-end — no errors, no delays, no portal confusion. Same-day filing available.
Yes. Every export invoice raised under LUT must contain the declaration: “Supply meant for export under LUT without payment of IGST.” Omitting this can lead to the invoice being treated as a taxable supply and may trigger a GST demand.
Yes. Supplies to Special Economic Zone (SEZ) units and developers are treated as zero-rated supplies under IGST Act. Exporters making such supplies must also file an LUT to supply without payment of IGST.
No. Filing LUT does not restrict your ability to claim Input Tax Credit on inputs used for the exported goods or services. You can still claim ITC refund on accumulated credits under the zero-rated supply provisions.
Yes. The LUT route is available to both goods exporters and service exporters, provided they are registered under GST and meet the eligibility conditions. IT companies, consulting firms, and other service businesses regularly use LUT for international billing.
Yes. While LUT handles the GST aspect of exports, you separately need an Import Export Code (IEC) from DGFT to legally export goods from India. Both are required together for customs clearance.