GST LUT for Exporters: How to File RFD-11 and Export Without Paying IGST

A Letter of Undertaking (LUT) is a one-page declaration filed online in Form GST RFD-11 that lets a registered person export goods or services, or supply an SEZ unit or developer, without paying IGST. It is valid for the whole financial year in which you file it, and almost every exporter can use it; only those prosecuted for tax evasion above ₹250 lakh must give a bond instead. You then claim back the GST paid on your inputs as a refund of unutilised credit.

Sources checked: 20 October 2026

Facts checked on 20 October 2026 against rules 89 and 96A of the CGST Rules, section 54 of the CGST Act and section 16 of the IGST Act on the CBIC tax information portal, CBIC Circular 8/8/2017-GST, and the GST portal's Form RFD-11 FAQ.

Key facts

Point	What applies	Source
Form	GST RFD-11, filed on the GST portal before the export	Rule 96A(1)
Covers	Exports of goods or services, and supplies to SEZ units or developers for authorised operations	Rule 96A(1), (6); IGST Act s.16(1)
Who can use it	All registered persons, except those prosecuted where tax evaded exceeds ₹250 lakh	Circular 8/8/2017-GST
Validity	The whole financial year in which it is furnished	Circular 8/8/2017-GST
Acceptance	Within three working days, else deemed accepted	Circular 8/8/2017-GST; portal FAQ
Goods condition	Exported within 3 months of invoice (or extended period), else pay tax with interest within 15 days after that	Rule 96A(1)(a)
Services condition	Payment received within 1 year or the FEMA period, whichever is later, else pay tax with interest within 15 days after that	Rule 96A(1)(b)
Refund route	Unutilised input tax credit, Form RFD-01, within 2 years of the relevant date	IGST Act s.16(3); CGST Act s.54; rule 89

What is an LUT and why do exporters file it?

An LUT is an undertaking to the jurisdictional Commissioner that you will pay the tax, with interest, if the conditions of a tax-free export are not met. Exports and supplies to SEZs are "zero-rated" under section 16 of the IGST Act: you may take input tax credit on what you buy, even though the supply carries no tax.

Section 16(3) of the IGST Act lets a registered person make a zero-rated supply without paying IGST, under a bond or LUT, and claim a refund of the unutilised input tax credit. Paying IGST on the export and claiming a refund of that IGST is allowed only for the classes of persons or goods the government notifies under section 16(4). For most small exporters, the LUT route is therefore the normal way to export.

Without an LUT, the IGST has to be paid first and recovered later, which blocks working capital.

Who can file an LUT, and who cannot?

Since Notification 37/2017-Central Tax, explained in CBIC Circular 8/8/2017-GST, the LUT facility is open to all registered persons who intend to export without paying IGST, except those prosecuted for an offence under the CGST Act, the IGST Act or the earlier laws where the tax evaded exceeds ₹250 lakh. Those persons must furnish a bond on non-judicial stamp paper, backed by a bank guarantee of 15% of the bond amount.

A self-declaration that you have not been prosecuted is accepted, and any checking is done afterwards. There is no minimum export turnover or foreign-exchange condition any more.

How do I file an LUT on the GST portal?

1. Log in to the GST portal and go to Services > User Services > Furnish Letter of Undertaking (LUT).
2. Select the financial year for which you are filing.
3. If you already have an LUT for the current year that was approved on paper, you may upload it (one file, up to 2 MB); this is optional.
4. Enter the name, address and occupation of two independent witnesses.
5. Tick each self-declaration.
6. Preview the form, then sign it with DSC or EVC as the primary or another authorised signatory.
7. Note the ARN. The acknowledgement can be downloaded, and the status is shown under View My Submitted LUTs.

The saved application stays available for 15 days if you need to finish it later.

How long is an LUT valid, and when must I renew it?

For the whole financial year in which it is tendered (Circular 8/8/2017-GST). The portal marks the LUT Expired at the end of that year. File the next year's LUT before your first export after 1 April, or that export will need payment of IGST or a bond.

The portal statuses are Submitted, Pending for Clarification, Pending for Order, Approved, Rejected, Deemed Approved (no action by the officer within three working days) and Expired. If the officer asks for clarification, a reply is expected within 15 working days.

What do I undertake in the LUT?

To pay the tax due with interest under section 50(1) within:

• for goods: 15 days after three months from the date of the export invoice, or any further period the Commissioner allows, if the goods are not exported; and
• for services: 15 days after one year, or the period allowed under FEMA including any extension permitted by the Reserve Bank of India, whichever is later, from the date of the invoice, if payment is not received in convertible foreign exchange or in Indian rupees where the RBI permits.

If you fail to pay, the facility is withdrawn at once and the amount is recovered under section 79. It is restored immediately when you pay (rule 96A(3), (4)). Exports in between must be made on payment of IGST or under a bond with bank guarantee.

The export invoice details you report in GSTR-1 (Table 6A) are sent electronically to Customs, and Customs confirms back to the GST portal that the goods have left India (rule 96A(2)). Report export invoices correctly in GSTR-1 so that this match works.

Nepal, Bhutan and SEZs: the circular allows an LUT for goods supplied to Nepal or Bhutan, or to an SEZ unit or developer, whether payment is in Indian rupees or convertible foreign exchange, as long as it follows RBI rules. Services to Nepal or Bhutan count as exports only if paid for in convertible foreign exchange.

How do I get back the GST on my inputs?

By claiming a refund of unutilised input tax credit on zero-rated supplies made without payment of tax, in Form RFD-01 on the portal (section 54(3), rule 89). The application must be made within two years of the relevant date as defined in the explanation to section 54 (section 54(1)); check the relevant date for your type of claim before the two years run out.

Two limits apply. No refund of unutilised credit is allowed on goods subject to export duty (section 54(15)). And no refund of credit is allowed if you claim drawback of central tax on the same supply (section 54(3), proviso).

The 57th GST Council meeting on 8 October 2026 recommended faster, system-based refunds, including a provisional refund of 90% on risk assessment for zero-rated supplies, and refunds of credit on capital goods for zero-rated supplies spread over 60 months for credit availed from 1 April 2027. These are recommendations and need notification before they apply. Track them on our government updates page.

Common mistakes

• Not renewing the LUT in April, then shipping the first consignment of the year without one.
• Filing on behalf of the wrong GSTIN where a business has registrations in more than one State.
• Missing the three-month window for goods held at port or returned.
• Not tracking export receipts for services against the one-year or FEMA deadline.
• Wrong Table 6A details in GSTR-1, which break the match with Customs data and delay refunds.
• Leaving the refund claim until after the two-year limit.

What to do now

Check that your LUT for FY 2026-27 is in place and shows Approved or Deemed Approved on the portal, and diarise the renewal before 1 April 2027. Haryana exporters should also look at the State's export freight subsidy, which has its own conditions. For help with the LUT, export reporting or a refund claim, ask our expert team through our GST services or book a consultation.