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Letter of Undertaking (LUT) Filing Services of GST in India (for Exporters)

GST LUT (Letter of Undertaking) Filing

Maximize Your Export Cash Flow with FOXTAX Precision

Are you looking to export goods or services without the burden of paying Integrated GST (IGST) upfront? At FOXTAX, we specialize in securing your Letter of Undertaking (LUT), allowing you to enjoy “Zero-Rated Supplies” and keep your working capital where it belongs—inside your business.

File your GST LUT Filing seamlessly with FOXTAX. starting at INR 999/- only.

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    GST LUT (letter of undertaking) filing Services in India

    What is a GST Letter of Undertaking ( LUT )?

    GST LUT, or Letter of Undertaking, is an exporter’s document that is filed under GST to ship goods or services without paying Integrated GST (IGST). Exporters who normally “Pay Tax and claim Refund” can use LUT to export goods by a bond so that their tax outgo at the point of sale is effectively zero.

    Under Rule 96A of CGST Rules, this facility is open only to registered companies making zero-rated supplies. As per the provisions under GST, the taxpayer is not only supposed to pay taxes as a general rule but also to declare the value of a transaction at such time for computing the tax amount even if it results in zero tax. The filing of GST LUT form is through GST RFD-11. and the taxpayer does not pay any filing fees on the gst portal.

    Who needs to File LUT?

    In the GST system, the following types of businesspersons can benefit from, and should so prioritize LUT filing through FOXTAX:

     

    • Exporters of goods: Businesses which do physical products exports to foreign countries.
    • Providing of services: Independent professionals, IT companies, and consultants with foreign clients.
    • Suppliers to Special Economic Zones (SEZ): Those who sell goods or services to SEZ units.
    • Zero-rated Suppliers: Exporters who do not want to pay IGST on shipments.
    • MSMEs and Merchants: Small and medium-sized enterprises hoping to maintain working capital as well as compete on a global scale.
    • First-time Exporters: Enterprises that are just starting with international trade and want to avoid upfront payments in IGST.

    Reasons You Should Get Your LUT filed

    • Smooth Working Capital: Your money remains untapped for government refunds while your business continues to run.
    • Less Paperwork: You avoid the hassle of submitting refund applications each time you export an invoice.
    • Low Prices and Greater Competitive Edge: The cost of tax is removed altogether from your invoice, so your products and services are more competitively priced on your exports.
    • One-Step for the full year: Just one filing suffices for a whole financial year from April to March.
    • Better money Management: Your working capital increases as you refrain from immediately paying IGST, allowing your business to run efficiently as well as invest in growth.
    • Simple Renewal Procedure: The annual LUT renewal consists of a few simple steps done through one channel and so export activities are ensured without any interruption.

    GST LUT Undertaking Price

    Starter

    Package starting from

    ₹ 999/-
    (All Inclusive)

    • Filing of One Letter of Undertaking (LUT) with GST authorities

    Benefits of GST LUT Filing

    Preservation of Working Capital

    One major benefit with GST LUT is the avoidance of the upfront Integrated GST (IGST) payment on your export invoices. If you don't have a LUT, your capital is "locked" in the tax system until a refund is obtained - a cycle which takes months - and thereby it reduces your ability to reinvest in operations or scaling.

    Elimination of Refund Hassles

    Filing an LUT helps you skip the whole "pay and claim" refund system. By doing this, the burden of managing a lot of refund queries, replying to departments, and handling the huge paperwork for getting IGST refunds is gone.

    Exemption from Bank Guarantees

    An LUT is an alternative to an export bond for most companies. But, it is usually necessary to have a bank guarantee of up to 15% of the bond's value when a bond is used, which most often involves the need for collateral or blocking a loan. An LUT but is nothing but a self-declaration with no collateral or safety requirement whatsoever.

    Global Competitive Edge

    Indian exporters that avoid having to pay upfront tax are able to offer attractive prices to customers in different countries. It will be more likely to have your cost reduced to levels you will want in order to make aggressive expansion plans worldwide.

    Seamless Logistics and Faster Fulfillment

    Since the customs and logistics of a consignment export are not hampered by the problem of taxes, your shipments move quicker. This would mean that the goods delivery schedule gets better, the clients are really happy with the product, the supply chain works like clockwork, and online LUT filing guarantees that your necessary documents get ready in advance.

    Enhanced Institutional Credibility

    The possession of a LUT is in effect a "Trusted Traveler Pass for your export shipments." It shows, for instance banks customs and your overseas buyers that you as a company are an exporter that is compliant and recognized, which fulfills all export obligations under the Section 16 of the IGST Act.

    Step-by-Step Process of GST LUT Filing

    FOXTAX adheres to a systematic method of GST LUT submission process

    Strategic Review

    We check if you are eligible for LUT and that you are regularly filing the GST documents and stay ahead of the department's investigations.

    Digital Submission

    We prepare and submit Form GST RFD-11, the online LUT application, with full assurance of accuracy on the portal.

    Acknowledgment Delivery

    It takes 1-2 business days to receive the Application Reference Number (ARN) and to be informed of your status as a zero-rated exporter officially. You can also save or print the certificate of LUT as your record.

    Frequently Asked Questions (FAQs)

    Who exactly is eligible to file an LUT, and are there any exclusions?
    Virtually all GST-registered suppliers/exporters of goods and services, including those to SEZ units, are eligible. The only exclusion is that of persons/entities prosecuted for evasion of taxes (exceeding the sum of ₹2.5 Crores under the CGST/IGST Act or applicable other laws). In these instances, they will be required to submit a bond backed by a bank guarantee instead of filing an LUT.
    Is the LUT a one-time registration, or does it expire?
    Validity of an LUT lasts one financial year only (April 1st to March 31st). To make your exporting activity without IGST payment work you have to make a fresh LUT filing as soon as you start the new financial year. We make this a painless process by reminding you right at the end of February so that you are not surprised with an expired certificate that may hold up your shipments.
    What consequences does an exporter face who doesn't file an LUT before a shipment?
    When a product is exported without a valid LUT, it is considered as a "taxable supply", and you have to pay the levied IGST amount. The payment can be claimed as a refund after that, but this will keep the working capital of the business blocked. If the authorities can see a proof that the export has been physically delivered and the payment was received then they might consider the mistake as a "procedural lapse" but in most cases it could be a matter of legal complications with the authorities.
    Can LUT filings be advantageous to service sector exporters and freelancers as well?
    Totally. A large number of freelancers and IT service providers providing services to non-resident clients utilize the LUT mechanism to eliminate the 18% IGST charge on their invoices. This is a great way of getting your full contract payment in foreign currency, without taxation, thereby keeping your pricing levels on a par with other global service providers.

    Do I have to meet any other requirements after having filed the LUT?
    Yes, one major aspect. Filing an LUT is the initial step, but to be a "Zero-Rated" taxpayer you need to also:

    For Goods: Ensure the goods leave India within 3 months of the invoice date.
    For Services: Realize the payment in convertible foreign exchange within 1 year of the invoice date. Failure to meet these deadlines will trigger GST (plus 18% interest) payment immediately.
    Why should I use Foxtax instead of filing for LUT on the portal myself ?
    Although anyone can file the LUTs through the online portal, the chances of error are higher, and even a minor error can bring a huge cost to you. It may lead you to a situation where your exports may not be carried out until these are addressed, which can cause you great damage in losses and loss of business opportunities. FOXTAX guarantees a quick response within 24 hours. We thoroughly proofcheck your declarations and maintain your ARN (Application Reference Number) on your dashboard so that in case an auditor asks for it, you could get it right away.

    What is the deadline for filing a LUT under GST?
    There is no specific "due date" for filing an LUT in the traditional sense. However, the LUT is valid for one financial year (from April 1st to March 31st). It is mandatory to file the LUT before you make any zero-rated export supply. For a new financial year, it is recommended to file the renewal LUT before April 1st to ensure there is no disruption in your export process without paying IGST.
    How can I download my LUT certificate from the GST Portal?
    To download your LUT certificate or acknowledgment, log in to the GST portal and navigate to Services > User Services > Furnish Letter of Undertaking (LUT). Here, you should be able to view a history of your filed LUTs. You can select the relevant financial year and download the LUT acknowledgment or certificate in PDF format, which serves as proof of your filing.
    What is the GST LUT filing form?
    The GST LUT is filed using a specific form known as Form GST RFD-11. This is the official form prescribed by the government for furnishing a Letter of Undertaking for the export of goods or services without payment of IGST. The form is available and submitted online through the GST portal.
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