LUT Filing for Exporters

What a Letter of Undertaking (LUT) is

Exports and supplies to Special Economic Zones (SEZs) are treated as zero-rated under GST — the final goods or services do not carry Indian GST. There are two ways to make a zero-rated supply: pay IGST on the export and claim it back later as a refund, or export without paying IGST at all under a Letter of Undertaking (LUT). The LUT, filed in form GST RFD-11, is essentially a declaration to the department that you will comply with the export conditions.

For most exporters the LUT route is far better, because it avoids locking up working capital in tax you would only get back months later. File the LUT once at the start of the year and you can export throughout the year without paying IGST upfront.

LUT vs paying IGST and claiming a refund

Without an LUT, every export invoice means paying IGST out of your own funds and then filing a refund claim to recover it — a cycle that can tie up significant cash for weeks or months, especially for regular exporters. With an LUT, that cash never leaves your business in the first place. For an exporter with steady shipments, the difference in working capital over a year is substantial. The LUT is simply the more efficient way to run an export business under GST.

Who is eligible to file an LUT

Most registered exporters can file an LUT rather than a bond. The main exclusion is where the exporter has been prosecuted for tax evasion above the prescribed monetary limit; such taxpayers must furnish a bond with a bank guarantee instead. If you are a normal, compliant exporter or SEZ supplier, you almost certainly qualify for the simpler LUT route — and we confirm your eligibility before filing.

The LUT must be renewed every financial year

An LUT is valid only for the financial year in which it is filed. It does not roll over automatically — you must file a fresh LUT at the beginning of each new financial year, ideally in April, before your first export of the year. Exporters who forget this often discover it only when a shipment is held up. We can remind you every April and file the renewal so your exports are never interrupted.

What happens if you export without a valid LUT

If you make an export without a valid LUT in place, you lose the without-payment option for that supply and are expected to pay IGST and claim it back as a refund — reintroducing exactly the cash-flow drag the LUT avoids. You also remain bound by the export conditions: for goods, export within the prescribed time, and for services, realise the payment in convertible foreign exchange within the allowed period. Keeping a current LUT on file is the simplest way to stay on the efficient side of all this.

LUT filing for Gujarat exporters

Gujarat is one of India’s biggest export bases — from Morbi’s ceramics and Surat’s textiles and diamonds to the chemical belts of Bharuch, Ankleshwar and Vapi and the ports of Kutch. Exporters across these clusters rely on LUTs and refunds as routine, high-stakes compliance. We file LUTs for exporters throughout Gujarat and India, handle the annual renewal, and connect it with your refund claims so the whole export-GST cycle runs smoothly.