GST LUT filing

GST LUT filing is the letter of undertaking that lets a registered exporter ship goods or services without paying IGST. Company Suggestion files Form GST RFD-11 for the financial year before the export invoice is raised.

What is a letter of undertaking?

An export of goods or services is a zero-rated supply. The exporter has two ways to treat the tax. One is to pay IGST and claim a refund. The other is to export without payment of IGST, under a letter of undertaking.

The LUT is that undertaking. It is filed online in Form GST RFD-11. The export invoice then states that the supply is under LUT, without payment of tax. If no LUT is in force, the exporter pays IGST or furnishes a bond.

Who can file an LUT?

Any person with an active GST registration can file an LUT, including a manufacturer and a service exporter. The exception is a person who has been prosecuted for an offence involving tax evasion of an amount exceeding ₹2.5 crore. That person furnishes a bond with a bank guarantee instead.

The filing uses the existing GST login of the authorised signatory. An importer-exporter code is the trade registration for export of goods. It is not the LUT, and an export of services does not turn on that code.

How long does one LUT last?

One LUT covers one financial year. It is filed before the exports of that year, and a fresh RFD-11 is filed for the next year. It does not roll forward on its own.

Goods should leave India within three months of the invoice date.
Payment for exported services should be received within one year of the invoice, unless the Commissioner allows a further period under Rule 96A.
If either period is missed, the IGST is paid with interest within 15 days after that period ends.

What are the filing steps?

Company Suggestion files the LUT in four steps.

The supply is confirmed as an export of goods or services.
RFD-11 is filed for that financial year, before the invoice.
The export invoice cites the LUT and charges no IGST.
If the goods or the payment miss the Rule 96A period, the IGST and interest are paid.

Frequently asked questions

4 questions cover the rules that decide this registration.

Which form is the LUT?

Form GST RFD-11, filed on gst.gov.in for a financial year.

Can every exporter use an LUT?

A registered person can. A person who has been prosecuted for tax evasion of an amount exceeding ₹2.5 crore furnishes a bond instead of an LUT.

What if the export or the payment is late?

Under Rule 96A, if the goods are not exported within three months of the invoice, or payment for services is not received within one year, the exporter pays the IGST with interest.

Is an IEC the same as an LUT?

No. The LUT is the GST undertaking for export without IGST. An importer-exporter code is the separate trade registration used for export of goods.