GST LUT for Exporters in Vadodara: How to File, Who Needs It and What Happens If You Miss It (FY 2026-27)

GST update — CBIC circulars of 26 October 2026: Circular No. 263/2026 clarifies that, for export of services, payment received in Indian rupees through accounts permitted by RBI (such as Special Rupee Vostro or SNRR accounts) and set-offs permitted by RBI count as realisation, so zero-rating is not lost. The LUT process for FY 2026-27 is unchanged.

Quick answer: A Letter of Undertaking (LUT) lets you export goods or services without paying IGST up front. You file it online on the GST portal in Form GST RFD-11, it is valid for one financial year only, and you should file it before your first export invoice of the year. Miss it and you may have to pay IGST on exports and wait for a refund, which blocks your cash.

A web designer in Vadodara bills a client in Australia. The invoice is for ₹3,00,000. She forgets to renew her LUT for the new year, so the invoice goes out with 18% IGST on it. That is ₹54,000 of her own money, paid to the government first and claimed back later. Nothing was wrong with the export. The paperwork was just a month late.

This guide explains what an LUT is, who needs one, how to file it and the mistakes that cost exporters the most.

What Is an LUT Under GST?

Exports are zero-rated under GST. That means no tax should stay with the government on a real export. You have two ways to get there:

• Option 1: export under LUT. You give an undertaking that you will complete the export and comply with the rules. You do not pay IGST on the invoice.
• Option 2: export with payment of IGST. You pay IGST on the invoice and then claim a refund.

Option 1 is the one most exporters prefer, because it keeps your working capital free. An LUT replaces the older route of furnishing a bond.

Who Needs an LUT?

• Exporters of services, such as IT and software, design, consulting, accounting support and other services to clients outside India.
• Exporters of goods who do not want to pay IGST at the time of export.
• Businesses supplying to an SEZ unit or developer without paying IGST.
• Other registered persons making zero-rated supplies.

You must be a registered taxpayer. A person who has been prosecuted for tax evasion above the prescribed limit (₹2.5 crore) is generally not eligible for an LUT and may have to furnish a bond instead. Check your own position with your CA before you rely on this.

Validity: One Financial Year at a Time

An LUT is valid only for the financial year it is furnished for. For FY 2026-27, it runs up to 31 March 2027. You need a fresh one for each new year.

There is no fixed due date in the law, but the practical rule is clear: file it before your first export invoice of the year, and before you make any zero-rated supply without IGST. Filing after the invoice is raised is a very common mistake.

How to File an LUT on the GST Portal

1. Log in to the GST portal at gst.gov.in.
2. Go to Services > User Services > Furnish Letter of Undertaking (LUT). The form is GST RFD-11.
3. Select the financial year from the “LUT Applied for Financial Year” drop-down.
4. Upload the required document in PDF or JPEG format, with a maximum size of 2 MB.
5. Tick the declarations on the form.
6. Enter the name and address of two independent and reliable witnesses.
7. Enter the place of filing and select the authorised signatory.
8. Preview, then sign using your DSC or EVC (OTP).
9. Download the acknowledgement. The system generates an ARN. Save it. You will need it for your records and for refund claims.

You can save a draft and come back to it later under My Saved Applications.

Documents and Details to Keep Ready

• GSTIN and login access to the GST portal.
• PAN of the business.
• Details of the authorised signatory.
• Names and addresses of two witnesses.
• Your DSC, or a registered mobile number for EVC.
• The signed LUT document, as a PDF or JPEG up to 2 MB.

What Happens If You Miss the LUT?

If you export without a valid LUT, you will usually have to pay IGST on the invoice. You can then claim a refund of that IGST, but refunds take time, and the money sits with the department in the meantime. For a small exporter, that can be a month or two of cash flow. Filing the LUT first avoids the whole problem.

Also note that an LUT comes with conditions. For goods, the export generally has to be completed within three months of the invoice date, unless the period is extended. If conditions are not met, the department can take the LUT facility away and ask for the IGST with interest.

Five Mistakes Exporters Make

• Filing after the first invoice. The invoice has already gone out with IGST on it.
• Forgetting to renew in April. The old LUT expired on 31 March.
• Mixing up the options. Some invoices go with IGST, others under LUT, with no clear record.
• Not tracking foreign payments. For services, you still need to receive payment in convertible foreign exchange.
• Not quoting the LUT number on invoices. Your export invoice should show the LUT details.

LUT and Your GST Returns

Exports under LUT are reported in GSTR-1 as zero-rated supplies without payment of tax, and your GSTR-3B must match. If these do not line up, a notice often follows. Read common GST return filing mistakes, and keep an eye on the monthly dates in our GST return filing guide.

Exporters also often build up unused input tax credit, because they pay GST on purchases but charge no output tax. Learn how this works in our GST input tax credit guide.

If you run a business that serves overseas clients, our international accounting outsourcing page explains how we work with overseas businesses. For registration help, see GST registration in Vadodara.

Frequently Asked Questions

What is the LUT form number?
Form GST RFD-11.

Is an LUT mandatory for exporting services?
It is not mandatory, but it is the usual choice. Without it, you pay IGST and claim a refund later.

How long is an LUT valid?
For one financial year. For FY 2026-27, it is valid till 31 March 2027.

Is there a fee to file an LUT?
There is no government fee for filing it on the GST portal.

Can I file an LUT for the current year after my first export invoice?
You can still file it, but invoices already raised with IGST are not changed by it. File before your first export of the year.

Do I need a DSC to file an LUT?
You can sign with either a DSC or an EVC (OTP on your registered mobile number).

Do I need an LUT if I only sell within India?
No. An LUT is for exports and other zero-rated supplies.

This article is general information, not professional advice. GST rules, forms and conditions can change by notification, so confirm current rules on the GST portal or with your CA before acting.