Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Check whether a registered exporter or SEZ supplier can use Form GST RFD-11 to supply without payment of IGST.
Check whether LUT can be used
LUT action path
LUT must ordinarily be furnished before export/SEZ supply without payment of IGST.
How This Is Calculated
A Letter of Undertaking (LUT) lets an exporter supply goods/services without paying IGST upfront (instead of paying and claiming refund later) — available to registered exporters (including SEZ supplies, which are treated as zero-rated) who haven't been prosecuted for tax evasion above a notified threshold. Without LUT eligibility, the exporter must pay IGST and claim a refund instead.
Frequently Asked Questions
What is the benefit of filing an LUT for exports?
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It lets an exporter supply goods or services without paying IGST upfront and then claiming a refund — instead, the export happens tax-free at the point of supply, improving cash flow by avoiding the wait for a refund.
Who is not eligible to file an LUT?
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Exporters who have been prosecuted for tax evasion involving amounts above a notified threshold are not eligible for LUT and must instead pay IGST on exports and claim a refund.
Does LUT apply to SEZ supplies too?
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Yes — supplies to SEZ units/developers are treated as zero-rated supplies similar to exports, and can also be made under LUT without upfront IGST payment, subject to the same eligibility conditions.
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.
Scope: Checks eligibility to furnish a Letter of Undertaking (LUT) for zero-rated export/SEZ supplies without payment of IGST, and outlines the required action where the exporter is not LUT-eligible.
Calculation logic
Check LUT eligibility: available to any registered person intending to supply goods/services for export or to an SEZ, except a person who has been prosecuted for tax evasion of an amount exceeding ₹2.5 crore under the CGST Act, IGST Act or an existing law, per the current LUT eligibility rule.
Where eligible, confirm the LUT (Form GST RFD-11) can be furnished online for the financial year, permitting zero-rated supply without upfront IGST payment.
Where not eligible (due to the prosecution exclusion), flag that the exporter must instead pay IGST on the export/SEZ supply and subsequently claim a refund of that IGST paid, rather than supplying under LUT.
Inputs and assumptions
LUT eligibility criteria follow the current CGST Rules (Rule 96A) and related notifications/circulars.
LUT validity is for one financial year and must be furnished afresh (or the prior year's LUT continues to be valid until a new one is furnished, per current procedure) at the start of each financial year.
Exclusions and edge cases
Does not itself file Form RFD-11 — this is an eligibility and guidance check only.
Where LUT conditions are subsequently breached (e.g., export proceeds not realised within the prescribed period), the exporter becomes liable to pay IGST with interest — this ongoing-compliance monitoring is outside the scope of this one-time eligibility checker.