What Is an LUT in GST Exports?
GSTZone Desk · Updated 2026
Short answer
A Letter of Undertaking (LUT), filed in Form GST RFD-11, lets an exporter supply goods or services (or supply to an SEZ) WITHOUT paying IGST upfront — avoiding the need to pay tax first and then claim it back as a refund.
In detail
Without an LUT, exporting under GST would technically mean paying IGST on every export invoice and then filing for a refund afterward — a working-capital-heavy process for a business that, by definition, isn’t even selling within India on that transaction.
An LUT removes that upfront payment step entirely. Once furnished, the exporter can raise export invoices without charging IGST, and instead periodically claims a refund of the input tax credit that piles up from taxed inputs feeding into an untaxed export output.
It has to be renewed every financial year — an LUT filed for one year doesn’t automatically carry forward — and isn’t available to a business that’s been prosecuted for tax evasion above a ₹2.5 crore threshold, who must instead use the pay-and-refund route.
GSTZone tip
File your LUT for the new financial year in the first week of April rather than waiting — exporting even a single invoice without a valid LUT in place for that year technically requires paying IGST on it instead.
Related questions
Does LUT apply to service exports too, or just goods?+
Both — LUT covers export of services as well as goods, and supplies to Special Economic Zones, all without upfront IGST payment.
Is a bank guarantee needed to get an LUT?+
No — for most exporters, LUT is a self-declared undertaking without needing a bank guarantee; a bond with bank guarantee is only required in specific cases where LUT eligibility itself isn’t met.
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