LUT Filing for Exporters: Documents, Timing and Common GST Mistakes
LUT is a small portal filing with a large compliance impact. If you are registered under GST and want to export goods or services without paying IGST upfront, you generally need to furnish a Letter of Undertaking in Form GST RFD-11 before making zero-rated supplies under LUT.
Use the GST Rule 42 Common ITC Reversal Calculator to apply these points to your figures or facts.
What LUT Does
LUT allows eligible registered exporters to make zero-rated supplies without payment of integrated tax, subject to conditions. Rule 96A requires the bond or Letter of Undertaking before export. The GST portal user guide states that registered taxpayers having zero-rated supply of goods or services furnish LUT in Form GST RFD-11 through the portal before affecting such supply.
For the connected rule, example or next step, see GST Annual Return GSTR-9 for SMEs: Examples, Documents and Common Mistakes.
| Item | What to check | Why it matters |
|---|---|---|
| GSTIN status | Registration active and returns substantially clean | Portal filing and refund claims can fail if compliance is broken. |
| Financial year | LUT should be furnished for the relevant year | Old LUT acknowledgement should not be reused blindly. |
| Export invoices | Invoice should mention export under LUT / without payment of IGST as applicable | Supports zero-rated treatment and refund trail. |
| Remittance proof | Keep FIRC/BRC/bank advice or equivalent evidence | Export-of-services condition and refund support. |
| Authorized signatory | DSC/EVC access and correct signatory details | Avoids last-minute portal filing failure. |
Common LUT Mistakes
- Filing LUT after export invoices have already been raised.
- Not renewing LUT for the new financial year.
- Using LUT even when the transaction does not satisfy export-of-services conditions.
- Not matching LUT, invoices, GSTR-1, GSTR-3B and refund claim period.
- Keeping payment gateway statements but no foreign remittance evidence.
For the connected rule, example or next step, see GST on Discounts, Schemes and Credit Notes: Examples, Documents and Common Mistakes.
Export of Services: Five Conditions to Test
A service is not automatically an export just because the customer is outside India. Under the IGST framework, export of services requires five checks: supplier located in India, recipient located outside India, place of supply outside India, payment received in convertible foreign exchange or permitted Indian rupees, and supplier and recipient not merely being establishments of a distinct person. Miss any one of these checks and the GST position can change completely.
| Condition | What to verify | Common evidence |
|---|---|---|
| Supplier in India | Your registered place/fixed establishment is in India | GST registration, invoice profile, business address. |
| Recipient outside India | Customer is located outside India | Contract, purchase order, billing details. |
| Place of supply outside India | Section 13 result should point outside India | Service classification memo, client scope, evidence of performance. |
| Payment condition | Foreign exchange / permitted INR receipt | FIRC/BRC, bank advice, remittance note. |
| Not same establishment | Supplier and recipient are not merely establishments of same person | Group structure, branch/subsidiary analysis. |
Worked Example
A Bengaluru-based software consultancy (registered under GST, LUT already furnished for the current financial year) signs a ₹12 lakh annual contract with a US-based client for custom software development. The consultancy checks the five export-of-services conditions: supplier in India (yes, its registered office); recipient outside India (yes, the US client); place of supply outside India (yes, under the default Section 13(2) rule for this service type); payment in convertible foreign exchange (yes, USD wire transfers with FIRC issued by the bank); and not merely establishments of the same person (yes, no group/branch relationship exists). All five conditions are met, so the consultancy raises invoices marked "export under LUT / without payment of IGST," reports them correctly in GSTR-1 and GSTR-3B, and files the FIRC alongside each invoice in its evidence folder. If even one condition had failed - say, the US entity turned out to be a wholly-owned subsidiary of the same Indian parent - the transaction could instead be treated as an intermediary or non-export supply, changing the GST position entirely despite the LUT already being on file.
Official References Used
This article uses official GST law, GST portal guides and CBIC circulars only. Verify rates, forms and procedural changes before publishing because GST notifications and portal flows can change.
Frequently Asked Questions
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- GST & Indirect Tax
- Official starting point
- www.gst.gov.in
See “Official References Used” above for the IGST Act 2017, CGST Rule 96A and GST Portal LUT user guide references used in this article.
Additional source links
For the connected rule, example or next step, see GST on Influencer Marketing and Brand Collaboration Deals: Documents, Forms and Filing Workflow.
For the connected rule, example or next step, see GSTAT Appeals in 2026: Filing, Documents and Litigation Controls.
Primary sources & related provisions
Statutory provisions referenced in this guide: