LUT (Letter of Undertaking) for GST-Exempt Exports
What an LUT is, who can file one, and how it lets exporters ship without paying IGST upfront.
Short answer: A Letter of Undertaking (LUT) lets an Indian GST-registered exporter ship goods or services without paying IGST upfront. It is filed online on the GST portal (form GST RFD-11) for each financial year. Invoices issued under it must carry the endorsement 'supply meant for export under LUT without payment of integrated tax'.
- Filed on
- GST portal, form GST RFD-11
- Validity
- One financial year
- Effect
- Zero-rated export without paying IGST
- Invoice endorsement
- Required under CGST Rule 46
What it is
A Letter of Undertaking (LUT) is a declaration a GST-registered exporter files with the tax department, allowing exports to be made without paying IGST upfront and then claiming a refund — instead, you ship under the undertaking that the transaction is a genuine export. It's filed under GST rules, separate from customs or DGFT registrations.
Without a valid LUT (or a similar bond arrangement), the alternative is paying IGST on the export and claiming a refund afterward — workable, but it ties up cash until the refund clears, which is exactly what an LUT is meant to avoid.
Eligibility and filing requirements
Most GST-registered exporters can file an LUT online through the GST portal, subject to conditions set by current GST rules (for example, exclusions have historically applied to exporters facing certain tax-evasion proceedings) — check current eligibility rather than assuming it's unconditional.
LUTs are typically filed for a financial year and need to be renewed each year to stay valid — a lapsed LUT does not automatically carry forward, and shipping under an expired one defeats its purpose.
Common mistakes
Letting the LUT lapse at financial year-end and continuing to invoice as if it were still active. Not referencing the LUT (or its acknowledgment number) on the export invoice where required, which can create ambiguity about which supplies were made under it.
Assuming an LUT applies automatically to every kind of outward supply — confirm which categories of export it actually covers for your business.
How it must match other documents
Your export invoice should reference the LUT (per current GST invoicing rules) for supplies made under it, and the invoice value should align with what you report in your GST returns for that period. If a shipment later needs correcting, that typically flows through a credit or debit note against the original invoice, not a fresh LUT filing.
How Bilexor helps
Bilexor keeps your export invoice details consistent with your shipment record, so the figures you need to reconcile against your GST returns and LUT-covered supplies come from one source rather than scattered documents.
Informational only — not tax advice. GST rules around LUT eligibility, filing, and invoice referencing do change; confirm current requirements with your CA or the GST portal before relying on anything here, especially before your LUT's annual renewal date.
Frequently asked questions
Does every exporter need to file a fresh LUT each year?
Yes, generally — an LUT is typically valid for one financial year and needs to be refiled for the next. Confirm the current cycle on the GST portal; don't assume a filed LUT carries forward automatically.
What happens if I ship without a valid LUT?
Without a valid LUT or bond in place, exports are generally made by paying IGST upfront and claiming a refund afterward — which still works, but ties up cash until the refund is processed. Confirm your options with your CA if your LUT has lapsed.
Sources
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.