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Why Every Exporter Needs an LUT

Without an LUT, exports attract IGST upfront — and you wait months to get it back as a refund. An LUT eliminates that wait entirely.

01

Export Without Paying IGST

With a valid LUT, you can raise export invoices as zero-rated supply without paying IGST. No tax outflow on exports at all.

02

Better Cash Flow

Without LUT, IGST paid on exports is locked until a refund is processed — often 2–3 months. LUT prevents this cash blockage entirely.

03

Standard for All Exporters

Whether you export software services, goods, or professional services to foreign clients, LUT is the standard mechanism used by all compliant exporters.

04

Annual Filing — Easy Renewal

LUT is valid for one financial year (April 1 to March 31). It needs annual renewal — a quick process we handle for you each year.

Legal Framework

LUT is governed by the CGST Act 2017 and CGST Rules 2017 — it is the primary mechanism for zero-rated export supply.

LUT Filing Process

Simple and quick — typically completed in 1 to 3 days once documents are ready.

1

Verify GST and Export Credentials

GST registration is verified as active. Export intent or past export invoices are confirmed. IEC code checked if applicable.

2

Login to GST Portal

Access the GST portal under Services → User Services → Furnish Letter of Undertaking (LUT).

3

File Form RFD-11

Form RFD-11 is filled with the LUT undertaking details — that IGST will be paid if export obligations are not fulfilled within time.

4

Enter Export Details and Give Undertaking

Export description, financial year, and the undertaking declaration are submitted. Two witnesses or DSC required for signing.

5

LUT Approved — Raise Zero-Rated Invoices

LUT is auto-approved on the portal or approved by officer within 3 days. You can now raise export invoices without IGST for the entire financial year.

Documents Required

Minimal documents needed — primarily identity proof and export credentials.

Timeline

LUT is typically approved within 1 to 3 days. File before your first export invoice of the financial year.

Day 1
Documents Ready
Day 1–3
RFD-11 Filed + Approved
Immediately
Zero-Rated Invoices
April 1
Annual Renewal

Benefits & Risks

Benefits of Filing LUT

  • Export without paying IGST — zero cash outflow on exports
  • No refund waiting period — cash flow remains healthy
  • Standard compliance for all exporters in India
  • Clients abroad get clean zero-rated invoices
  • Annual renewal is quick and inexpensive

Risks Without LUT

  • IGST must be paid on every export invoice upfront
  • Refund processing takes 2–3 months — blocks significant working capital
  • Refund claims can be rejected for procedural errors
  • Export invoices without LUT reference may trigger GST notices
  • Non-compliance can affect DGFT and customs standings

Related Services

Starting exports? File your LUT first.

WhatsApp Anurag with your GSTIN. LUT filed within 1–3 days so you can start raising zero-rated invoices immediately.

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