Overview
Under the GST regime, exporting goods or services is considered an "inter-state supply" and attracts Integrated GST (IGST). However, to promote exports, the government allows exporters two options: 1) Pay IGST upfront and claim a refund later, or 2) Export without paying any IGST by filing a Letter of Undertaking (LUT). Filing an LUT (Form RFD-11) is the preferred method as it ensures your working capital is not blocked while waiting for government refunds. The LUT must be filed and accepted before any export invoice is generated.
What is Included in Our Package
Detailed compliance and filing scope managed by JRC corporate experts.
Documents Required to Start
Upload digital files during onboarding. No physical submissions needed.
Entity Details
- GSTIN Login Credentials
- Copy of PAN Card and Aadhaar of the authorized signatory
- Details of previous export performance (if applicable)
Witness Details
- Name, Address, and Occupation of two independent witnesses (required for the legal undertaking form)
Step-by-Step Filing Timeline
Our step-by-step advisory workflow.
Step 1: Information Gathering
We collect your authorized signatory details and the details of the two mandatory witnesses.
Step 2: Form RFD-11 Preparation
We draft the legal undertaking stating that you promise to complete the export within the stipulated time frame.
Step 3: Submission via EVC/DSC
We submit the form on the GST portal. You authenticate it using an Aadhaar OTP (EVC) or Digital Signature (DSC).
Step 4: ARN Generation
The portal instantly generates an Application Reference Number (ARN) receipt, which serves as absolute proof of LUT filing.
Key Advantages of Filing a LUT
An LUT is a powerful cash flow management tool for exporters.
Zero Blocked Capital
You do not have to pay 18% (or applicable rate) IGST from your pocket while making an export, saving massive amounts of working capital.
Simpler Compliance
Avoids the tedious process of tracking shipping bills and filing complex refund claims with the customs and tax departments.
Applies to Services Also
It is highly beneficial for IT/Software companies and freelancers exporting services, allowing them to raise zero-tax invoices to foreign clients.
Frequently Asked Questions
Helpful answers to common regulatory inquiries.
When should the LUT be filed?▼
The LUT must be filed before the beginning of every financial year (typically in March). It is valid from April 1st to March 31st.
What happens if I export without filing an LUT?▼
If you export without an active LUT, you are legally required to pay IGST on the export invoice and then file for a refund, which blocks your cash flow.
Are there conditions attached to the LUT?▼
Yes. You undertake to export the goods within 3 months of issuing the invoice, or receive payment for services in convertible foreign exchange within 1 year. If you fail, you must pay the IGST along with 18% interest.
Professional Legal Desk
Corporate filings managed directly by certified Chartered Accountants & Company Secretaries.
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