What is a letter of undertaking (LUT)?
Reviewed by Ranga & Company
LUT: A letter of undertaking (LUT) is a declaration filed on the GST portal that lets exporters ship goods or services without paying IGST upfront, and then claim refunds of unused input tax credit.
At a glance
- Form
- RFD-11 on the GST portal
- Validity
- One financial year; file a fresh one before each year
- Who can file
- Registered exporters not prosecuted for tax evasion above ₹2.5 crore
- Also covers
- Supplies to SEZ units and developers
Export with LUT or pay IGST?
Most exporters, including Jodhpur's handicraft and furniture exporters, use LUT to avoid blocking working capital in IGST.
| Route | Cash flow | Refund claimed |
|---|---|---|
| Under LUT | No IGST paid on exports | Unused input tax credit |
| IGST paid | Pay IGST, then get it back | IGST paid on exports |
Filing an LUT
- Log in to gst.gov.in → Services → User Services → Furnish LUT
- Select the financial year and confirm the declarations
- Sign with DSC or EVC and submit; download the ARN acknowledgement
- Quote the LUT reference on export invoices
Common mistakes
- Forgetting to renew the LUT for the new financial year
- Not receiving export proceeds in time, which can make IGST payable with interest
Frequently asked questions
How long is a GST LUT valid?
For the financial year it is filed for. A new LUT must be filed for each year.
Is an LUT needed for exporting services?
Yes, to export services without paying IGST; the same LUT covers goods and services.
Is there a fee to file an LUT?
No. It is filed online on the GST portal free of charge.
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