GST Letter of Undertaking (LUT) (₹799) | Mazco Corporate Services

What is a GST Letter of Undertaking (LUT)?

Under GST law, exports of goods and services are classified as 'Zero-Rated Supplies'. Exporters have two statutory options: export after paying Integrated GST (IGST) and later claim a refund, or file a Letter of Undertaking (Form GST RFD-11) to export without paying any upfront tax.

Filing a LUT eliminates capital blockage entirely. Exporters can invoice foreign buyers in foreign exchange (USD, EUR, GBP, etc.) without collecting or depositing IGST, preserving cash liquidity for core business operations.

Key Statutory Benefits & Business Advantages

Holding a verified, compliant registration delivers substantial commercial and legal protections:

Zero Working Capital Blockage

Eliminate the need to pay 18% upfront IGST on overseas client invoices, protecting your monthly cash flow.

No Tedious Tax Refund Claims

Bypass the complex, multi-month bureaucratic process of claiming IGST cash refunds from customs and tax desks.

Full Financial Year Coverage

A single LUT submission covers all exports of goods and services executed between April 1st and March 31st.

Essential for IT Freelancers

Mandatory for independent developers, SaaS platforms, and consulting agencies receiving foreign remittances.

Same-Day Instant ARN

Electronic preparation and submission on the GSTN portal with instant generation of Application Reference Number.

Full ITC Refund Rights

Retain the legal right to claim accumulated input tax credit refunds on input goods and services under Section 54.

Eligibility Criteria for Filing Form GST RFD-11

Who is qualified to submit a Letter of Undertaking under GST regulations:

Parameter	Statutory Requirement	Verification
GST Registration	Active Regular GSTIN Holder	Verified on GST portal
Prosecution Record	No prosecution under GST Act for tax evasion > ₹2.5 Crore	Self-declaration certified
Nature of Supply	Export of goods or services outside India or to SEZ units	Export agreement / FIRC
Filing Frequency	Once every Financial Year (April - March)	Annual renewal

Compliance Note: Special Economic Zones (SEZ): Supplies made to SEZ developer or SEZ units are also considered zero-rated and covered under the LUT without upfront IGST.

Mandatory Documents Required

Our team verifies every document prior to portal submission to prevent officer clarification delays:

Active GSTIN Login Details

To access the Form GST RFD-11 module

Import Export Code (IEC)

Mandatory for physical goods export (optional for services)

Authorized Signatory Details

PAN, Aadhaar and DSC / EVC access

Two Independent Witnesses

Names, addresses, and occupations of two witnesses

Foreign Remittance Proof (FIRCs)

Optional for filing, required for statutory records

Previous Year LUT Acknowledgment

For renewal filings

Our 4-Step Filing & Registration Process

We ensure accuracy and speedy turnaround with complete milestone visibility:

1

Eligibility Review

Verification of GST status, export classification, and absence of tax evasion prosecution.

2

Witness Details

Collection of witness data and drafting of statutory undertakings under Form RFD-11.

3

Digital Submission

E-signing via Class-3 DSC or authorized signatory Aadhaar OTP on the GSTN portal.

4

ARN Handover

Instant download and delivery of official LUT ARN receipt with permanent validity for the FY.

Frequently Asked Questions

Any registered taxpayer exporting goods or services outside India or supplying to Special Economic Zones (SEZ) who wishes to export without paying upfront Integrated GST must file a LUT.

Yes. Export of software, digital marketing, SaaS subscriptions, or consulting services to clients outside India where payment is received in convertible foreign exchange qualifies as zero-rated export and requires a LUT.

A Letter of Undertaking is valid for one full financial year (from April 1st to March 31st). A fresh LUT must be filed at the beginning of each financial year.

No, the Government of India charges zero official fee for submitting Form GST RFD-11 on the GST portal. Mazco charges a professional fee of ₹799 for drafting, filing, and generating the ARN.

If you export without filing a LUT, you are legally required to pay the applicable Integrated GST (IGST) upfront on the export invoice and then claim a refund later.

The GST portal requires the names, occupations, and addresses of two independent witnesses. They do not need to visit any office or upload identity documents.

GST Letter of Undertaking (LUT)