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—gst-lut-form-rfd-11-export-without-igst-india [2026/07/22 17:47] (current) – created - external edit 127.0.0.1
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 +{{htmlmetatags>metatag-description=(File Form GST RFD-11 to furnish a Letter of Undertaking and export goods or services without paying IGST, valid for one financial year under CGST Rule 96A.)&metatag-keywords=(GST LUT, Form RFD-11, export without IGST, letter of undertaking GST, Rule 96A CGST, zero rated supply)&metatag-robots=(index,follow)&metatag-og:title=(GST LUT Form RFD-11 Export Without Paying IGST)&metatag-og:description=(File Form GST RFD-11 to furnish a Letter of Undertaking and export goods or services without paying IGST, valid for one financial year under CGST Rule 96A.)&metatag-og:type=(article)}}
 +
 +====== GST LUT (Form RFD-11): Export Without Paying IGST ======
 +
 +
 +{{ :social:auto:gst-lut-form-rfd-11-export-without-igst-india.png?direct&1200 |GST LUT (Form RFD-11): Export Without Paying IGST — RTI Wiki}}
 +
 +If you export goods or services from India and do not want your working capital trapped in IGST refunds for months, a Letter of Undertaking is the document that unlocks zero-rated supply without paying tax upfront. File it once at the start of each financial year and your export invoices can leave India IGST-free.
 +
 +<WRAP info>
 +**Quick Reply:** A Letter of Undertaking (LUT) in Form GST RFD-11, filed under Rule 96A of the CGST Rules, lets a GST-registered exporter ship goods or services without paying IGST upfront. The alternative is paying IGST and claiming a refund later. An LUT is valid for one financial year and must be re-filed before 31 March every year.
 +</WRAP>
 +
 +===== Are you eligible to file an LUT? =====
 +
 +The LUT route is open to almost every exporter, but there is one disqualification. Check this list before you file.
 +
 +**You CAN file an LUT if:**
 +  * You hold a valid GST registration (regular taxpayer).
 +  * You intend to export goods, services, or both as a zero-rated supply.
 +  * You have NOT been prosecuted for tax evasion exceeding ₹2.5 crore (250 lakh) under the CGST Act, the IGST Act, or any earlier tax law.
 +
 +**You CANNOT file an LUT (must furnish a bond with bank guarantee instead) if:**
 +  * You have been prosecuted for an offence where the tax evaded crosses ₹2.5 crore under the CGST Act, the IGST Act, or earlier laws.
 +
 +If you are barred, you cannot self-declare on RFD-11. You must execute a bond backed by a bank guarantee with your jurisdictional officer before exporting without payment of IGST.
 +
 +===== Step-by-step: how to file Form RFD-11 on the GST portal =====
 +
 +The whole process is online and free. There is no fee for filing an LUT.
 +
 +  - Log in to the GST portal at [[https://www.gst.gov.in|www.gst.gov.in]] with your GSTIN credentials.
 +  - Go to **Services > User Services > Furnish Letter of Undertaking (LUT)**.
 +  - Select the **financial year** for which the LUT applies (for example, 2026-27).
 +  - If you filed an LUT offline in an earlier period, upload that previous LUT as an attachment (optional).
 +  - Read and tick the three **self-declaration** boxes confirming you will complete exports within the prescribed time, follow GST law, and pay IGST with interest if you default.
 +  - Enter the name, occupation, and address of **two independent witnesses**. These are mandatory.
 +  - Fill in the place of filing, then sign with your **DSC (Digital Signature Certificate)** or **EVC (electronic verification code)**.
 +  - Submit. The portal generates an **ARN (Application Reference Number)** and an acknowledgement you can download and keep on file.
 +
 +Once submitted, the LUT is accepted electronically. You do not need to physically visit any GST office or submit documents to the jurisdictional officer separately.
 +
 +===== Warning: what happens if you miss the export deadline =====
 +
 +An LUT is a promise, not a free pass. Rule 96A attaches two hard clocks to it.
 +
 +<WRAP center round box>
 +**The two deadlines under Rule 96A**
 +
 +  * **Goods:** must be exported out of India within **3 months** from the date of the export invoice.
 +  * **Services:** the **foreign exchange payment** must be realised within **1 year** from the date of the export invoice.
 +</WRAP>
 +
 +If you breach either deadline, the LUT facility is **withdrawn** and you are treated as having made a taxable supply. You must then pay:
 +
 +  * the **applicable IGST** on that supply, plus
 +  * **interest under Section 50** of the CGST Act (generally **18% per annum**, simple interest), calculated from the date of the export invoice.
 +
 +This payment is due **within 15 days** after the relevant deadline expires (the 3-month period for goods). If you fail to pay, the export benefit allowed under the LUT is withdrawn and the amount can be recovered as a tax demand under the CGST Act. The lesson: track your shipping dates and your inward remittances against every export invoice, and act before the clock runs out.
 +
 +===== Renewal: the 31 March rule you cannot forget =====
 +
 +An LUT is valid for **one financial year only**. It expires on **31 March** and does **not** auto-renew. You must file a fresh Form RFD-11 for the new financial year **before your first export of that year**.
 +
 +A common and expensive mistake: an exporter who filed an LUT last April assumes it still covers them in the new April. It does not. If you export in the new year without a valid LUT in place, that supply is not covered by the zero-rated-without-payment route, and you may be forced to pay IGST and claim a refund instead. Mark a reminder for late March every year and file the renewal first thing.
 +
 +===== Real-life example =====
 +
 +<WRAP center round box>
 +**Kashvi Pathak runs a handloom export unit in Bhadohi.**
 +
 +She ships home textiles to a buyer in Germany. In April 2026 she logs in to the GST portal, files Form RFD-11 for FY 2026-27, names two witnesses, and signs with EVC. Her ARN is generated the same day, so her April export invoices go out IGST-free, keeping her working capital free for raw material.
 +
 +In one consignment, a logistics delay pushes the actual export past the 3-month window from the invoice date. Because the goods did not leave India in time, the LUT facility is withdrawn for that invoice. Kashvi pays the applicable IGST plus 18% interest under Section 50 from the invoice date, within 15 days of the deadline expiring, and avoids a recovery demand. The takeaway she now drills into her team: every export invoice gets a 3-month calendar alert.
 +</WRAP>
 +
 +===== Frequently asked questions =====
 +
 +==== Is there any government fee to file an LUT? ====
 +No. Filing Form RFD-11 on the GST portal is free. There is no statutory fee for furnishing a Letter of Undertaking.
 +
 +==== How long is an LUT valid? ====
 +One financial year. It expires on 31 March and must be re-filed for the next year before your first export of that year. It does not renew automatically.
 +
 +==== What is the difference between an LUT and paying IGST then claiming a refund? ====
 +With an LUT you export without paying IGST upfront, so no money is blocked. The alternative is to pay IGST on the export and claim it back as a refund later, which ties up working capital until the refund is processed.
 +
 +==== Who has to file a bond instead of an LUT? ====
 +Only exporters who have been prosecuted for an offence where the tax evaded exceeds ₹2.5 crore under the CGST Act, IGST Act, or earlier laws. They must furnish a bond with a bank guarantee instead of a self-declared LUT.
 +
 +==== What happens if I export the goods late? ====
 +If goods are not exported within 3 months of the export invoice date, the LUT facility is withdrawn. You must pay the applicable IGST plus interest under Section 50 (generally 18% per annum) from the invoice date, within 15 days of the deadline expiring.
 +
 +==== Does the LUT cover export of services too? ====
 +Yes. For services, the condition is that the foreign exchange payment must be realised within 1 year from the date of the export invoice. If it is not, the LUT facility is withdrawn and IGST with interest becomes payable.
 +
 +==== Do I need witnesses to file the LUT? ====
 +Yes. Form RFD-11 requires the details of two independent witnesses (name, occupation, and address). This is a mandatory field on the GST portal.
 +
 +==== Can I sign the LUT without a Digital Signature Certificate? ====
 +Yes. You can sign with either a DSC or an EVC (electronic verification code sent to your registered mobile and email). Both are accepted on the GST portal.
 +
 +===== Sources =====
 +
 +  * CBIC, Rule 96A of the CGST Rules 2017 (export under bond or LUT) https://taxinformation.cbic.gov.in
 +  * GST portal, file Form GST RFD-11 https://www.gst.gov.in
 +  * ClearTax, Exports under GST: how to use bond or LUT https://cleartax.in/s/gst-export-bond-and-lut
 +
 +===== Related reading =====
 +
 +  * [[https://righttoinformation.wiki/gst-2-0-new-tax-slabs-5-18-40-reform-2025-india|GST 2.0: new tax slabs (5, 18, 40%) reform explained]]
 +  * [[https://righttoinformation.wiki/gst-demand-notice-reply-section-73-74a-india-2026|How to reply to a GST demand notice under Section 73 / 74A]]
 +  * [[https://righttoinformation.wiki/gst-composition-scheme-eligibility-opt-in-india|GST Composition Scheme: eligibility explained]]
 +  * [[https://righttoinformation.wiki/gstr-9-annual-return-filing-guide-india|GSTR-9 annual return filing guide]]
 +  * [[https://righttoinformation.wiki/book|The RTI Playbook]]
 +
 +{{tag>gst gst service lut form rfd export without}}
  
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