Check eligibility under Rule 96A of CGST Rules for exporting goods or services without paying IGST, and generate a printable Letter of Undertaking draft.
Under Section 16 of the Integrated Goods and Services Tax (IGST) Act, 2017 read with Rule 96A of the CGST Rules, any registered person exporting goods or services out of India or supplying to Special Economic Zone (SEZ) developer/unit can supply without payment of IGST by furnishing a Letter of Undertaking (Form GST RFD-11).
Export of Goods: Goods must be exported out of India within 3 months from the date of the export invoice.
Export of Services: Foreign convertible exchange / permissible INR must be received within 1 year (or RBI permitted time) from the invoice date.
If the taxpayer has been prosecuted for tax evasion exceeding ₹250 Lakhs under CGST/IGST Act, they are disqualified from filing an LUT and must furnish an Export Bond on non-judicial stamp paper backed by a Bank Guarantee of up to 15% of the estimated tax liability.
| Parameter | Letter of Undertaking (LUT) | Export Bond |
|---|---|---|
| Eligibility | All registered exporters not prosecuted > ₹2.5 Cr | Taxpayers with past criminal tax prosecution |
| Validity | 1 Financial Year (e.g. FY 2024-25) | Running Bond / Specific consignment |
| Bank Guarantee | Zero (No BG required) | Mandatory up to 15% of tax |
| Filing Mode | 100% Online on GST Portal (Services > User Services > LUT) | Physical submission to Jurisdictional Officer |
LUT is valid for one financial year only. Exporters must renew their LUT before April 1st of each financial year to continue zero-rated exports without IGST.
Yes. Taxpayers exporting under LUT are eligible to claim a cash refund of unutilized Input Tax Credit (ITC) on inputs and input services under Rule 89(4) of the CGST Rules.
Yes. When submitting Form GST RFD-11 on the GST portal, you must provide the Name, Address, and Occupation of two independent witnesses.