Letter of Undertaking (LUT) Filing
Filing of the Letter of Undertaking in Form GST RFD-11 so that you can export goods or services without paying Integrated Goods and Services Tax upfront and waiting for a refund.
A Letter of Undertaking (LUT) is an annual declaration filed in Form GST RFD-11 in which an exporter undertakes to complete its exports within the prescribed period and to pay tax with interest if that undertaking is not met. Once filed, it allows export of goods or services, and supplies to a Special Economic Zone (SEZ) developer or unit, to be made without payment of Integrated Goods and Services Tax (IGST) — which removes the working capital cost of paying tax and then claiming it back.
What our Letter of Undertaking service covers
Filing the undertaking, and keeping the conditions attached to it satisfied.
- Confirming eligibility to furnish a Letter of Undertaking rather than a bond with bank guarantee
- Preparing and filing Form GST RFD-11 on the Goods and Services Tax portal for the financial year
- Compiling authorised signatory, witness and supporting details required with the undertaking
- Quoting the accepted undertaking and the correct declaration on export invoices
- Tracking the conditions attached, including receipt of export proceeds within the prescribed period
- Renewing the undertaking before the start of each financial year so exports are never uncovered
What determines your Letter of Undertaking position
The points that decide whether you can export without paying tax.
Annual Validity
A Letter of Undertaking covers one financial year and has to be filed afresh for the next year, before the first export of that year.
Zero-Rated Supply
Exports and supplies to a Special Economic Zone are zero-rated, and can be made either under an undertaking without tax, or on payment of tax followed by a refund claim.
Supplies to SEZ
Supplies to a Special Economic Zone developer or unit for authorised operations are covered by the same undertaking as physical exports.
Bond with Bank Guarantee
Where the undertaking is not available, the alternative route is a bond backed by a bank guarantee, which carries a real cost and needs separate handling.
Our process
From initial consultation to completion.
Eligibility Check
Confirming that you can furnish an undertaking, and that no disqualifying default stands against the registration.
Form Preparation
Assembling the declaration, signatory details and supporting information required in Form GST RFD-11.
Filing and Acknowledgement
Filing on the portal and retaining the acknowledgement and reference number for use on export documents.
Ongoing Conditions
Monitoring realisation of export proceeds and the timelines attached, and renewing the undertaking each year.
Why Letter of Undertaking lapses become expensive
What sets our approach apart.
The undertaking lapses quietly at year end
Exporters routinely dispatch in April against last year's undertaking, and only discover the gap when a refund or an audit query is raised.
Export documents must carry the declaration
An export invoice that does not carry the prescribed declaration for supply without payment of tax invites a dispute the exporter has to argue out of.
A breach converts zero-rating into a demand
Where the conditions of the undertaking are not met, the tax that was never paid becomes payable with interest from the original date.
Letter of Undertaking questions answered
What people ask before engaging us.
Exporting this year without a valid undertaking?
We will file your Letter of Undertaking and keep the renewal on our calendar, not yours.
