What is an LUT (Letter of Undertaking)?
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Short answer
A Letter of Undertaking (LUT) is an undertaking a GST-registered person files in FORM GST RFD-11 under CGST rule 96A.7 It lets the person export goods or services without paying integrated tax.7 The exporter binds itself to pay the tax with interest if export conditions fail.7 An LUT is valid for the financial year in which it is furnished.4
| Full form | Governed by | Who needs it | Where it is used | Related terms |
|---|---|---|---|---|
| Letter of Undertaking | IGST Act section 16 and CGST Rules rule 96A27 | GST-registered exporters who invoice without IGST | Filed in FORM GST RFD-11 on the GST portal; referred to on export invoices13 | Zero-rated supply, place of supply, IGST refund, bond |
A GST-registered web developer in Jaipur who bills a client in Sydney has two routes: charge Integrated Goods and Services Tax (IGST) on the invoice and claim it back, or file an LUT and invoice without tax.27
What does an LUT mean in simple words?
An LUT is a yearly promise to the GST department that lets a registered exporter send export invoices without IGST. Section 16 of the IGST Act treats export of services as a zero-rated supply and allows a registered person to make it under bond or Letter of Undertaking without paying IGST.2
- Form: FORM GST RFD-11, under rule 96A of the Central GST (CGST) Rules.7
- Promise: to pay the tax with interest if the export conditions are not met.7
For example, a Jaipur developer with an LUT bills a Sydney client with no IGST line on the invoice.2
Why does an LUT matter for Indian exporters and freelancers?
An LUT matters because it keeps a zero-rated export free of IGST at the time of invoicing, which avoids waiting for a refund.2
- GST: without an LUT, a registered exporter charges IGST, pays it and claims a refund under section 16.2
- Invoicing: an invoice under LUT carries the rule 46 endorsement.1
- Payment deadline: the LUT ties the exporter to receiving payment within the rule 96A period.7
The supply is zero-rated either way; the LUT changes cash flow.2
How does an LUT work?
An LUT works as a conditional undertaking: the exporter skips IGST now and pays it later only if payment does not arrive in time. For services, the tax falls due fifteen days after one year from the invoice date, or the period allowed under the Foreign Exchange Management Act, 1999 (FEMA) including any extension the RBI permits, whichever is later (or a further period the Commissioner allows).7
- Condition: payment must be received in convertible foreign exchange, or in Indian rupees where RBI permits.7
- Source of the wording: Notification No. 12/2024-Central Tax of 10 July 2024 substituted this clause.7
Keep the invoice date and payment date for each export, since the deadline runs from the invoice.7
How do you file and use an LUT?
You file an LUT online on the GST portal under Services > User Services > Furnish Letter of Undertaking (LUT), signed with a Digital Signature Certificate or an Electronic Verification Code.3
| Point | Rule |
|---|---|
| Form | FORM GST RFD-11 |
| When | Before the export |
| Acceptance | Deemed accepted when the ARN is generated |
| Validity | The financial year in which it is furnished |
The table draws on rule 96A and CBIC Circulars 8/8/2017-GST and 40/14/2018-GST.457 The screen-by-screen steps are in how to file an LUT on the GST portal, and yearly renewal in LUT renewal and validity.
What is the difference between an LUT, a bond and paying IGST?
An LUT, a bond and paying IGST with a refund are the three ways a registered exporter handles IGST on a zero-rated export.24
| Route | How it works | Best for |
|---|---|---|
| LUT | Invoice without IGST under RFD-11 | Most registered exporters |
| Bond | Invoice without IGST against a bond | A person prosecuted for a tax offence with tax evaded above ₹250 lakh |
| IGST paid, then refund | Charge and pay IGST, then claim a refund | Exporters who have not filed an LUT |
The table draws on section 16 of the IGST Act and Circular 8/8/2017-GST.24 Proprietors, partnership firms, LLPs and companies all use the same LUT form.4
What do people get wrong about an LUT?
People often think an LUT makes any foreign invoice an export. If the conditions in section 2(6) of the IGST Act are not met, for example because the place of supply is in India, an LUT does not help and GST may be payable as on a domestic supply.6
- Registration: an LUT is for registered persons only.7
- Renewal: an LUT does not roll over; it covers one financial year.4
If your situation is unusual, confirm with a chartered accountant.
Which terms are related to an LUT?
These terms shape when an LUT applies and what happens without one:
- Place of supply: must be outside India for a service to be an export.6
- Zero-rated supply: the GST treatment of exports under section 16.2
- IGST refund: the route used when IGST is paid on an export.2
- Export of services: the five-condition test in section 2(6).6
- GST on export of services: the wider GST rules for exporters.
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]CBIC: CGST Rules, 2017 (consolidated), rule 46
- [2]CBIC: IGST Act, 2017, section 16 (zero rated supply)
- [3]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
- [4]CBIC Circular No. 8/8/2017-GST dated 4 October 2017 (eligibility and validity of LUT)
- [5]CBIC Circular No. 40/14/2018-GST dated 6 April 2018 (deemed acceptance on ARN generation)
- [6]CBIC: IGST Act, 2017, section 2(6) (export of services)
- [7]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), clause (1)(b) as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
Frequently asked questions
Does an unregistered freelancer need an LUT for export invoices?+
No. An LUT is filed by a registered person under rule 96A of the CGST Rules, so an unregistered freelancer does not file one. An unregistered freelancer does not charge GST on any invoice, whether the client is in India or abroad, and has no integrated tax to suspend.7
How long is an LUT valid under GST?+
An LUT is valid for the financial year in which it is furnished, under CBIC Circular 8/8/2017-GST. An exporter therefore files a fresh LUT for each financial year, usually each April, before raising the first export invoice of that year without integrated tax.4
Is an LUT approved by a GST officer before I can use it?+
An LUT is deemed accepted as soon as the acknowledgement with the Application Reference Number (ARN) is generated on the GST portal, under CBIC Circular 40/14/2018-GST. The exporter does not wait for a separate approval from a GST officer before using the LUT.5
What must an export invoice under an LUT say?+
Rule 46 of the CGST Rules requires an export invoice under an LUT to carry the endorsement "SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX".1
Who cannot use an LUT and must give a bond instead?+
Under Circular 8/8/2017-GST, a person prosecuted for a tax offence where the tax evaded exceeds ₹250 lakh cannot use an LUT. Such a person must furnish a bond instead to export without paying integrated tax. Every other registered exporter can use the LUT route.4
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
How do you file an LUT for export of services on the GST portal?
Step-by-step guide to filing a Letter of Undertaking in FORM GST RFD-11 for export of services: eligibility, validity, late filing and the ARN on invoices.
GSTHow long is an LUT valid, and when do you renew it?
An LUT for export of services is valid only for the financial year it is filed in. When to renew, what Expired means, gaps in April, withdrawal and new GSTINs.
GlossaryWhat is place of supply under GST?
Place of supply decides where GST applies. For cross-border services, section 13 of the IGST Act usually makes it the client's location. What it means for exporters.
GlossaryWhat is an IGST refund?
An IGST refund returns integrated tax paid on a zero-rated export. For services it is claimed in FORM GST RFD-01 under rule 89 within two years. How it works.
GSTHow does GST apply to export of services from India?
How GST works when you bill a foreign client from India: the five export conditions, LUT vs IGST refund, records to keep, payment deadlines and mistakes.