GST Export Services: LUT Filing Guide for Zero-Rated Supplies
Complete guide to filing LUT (RFD-11) for exporting services without IGST
- What is LUT: Letter of Undertaking to export services at 0% GST (Form RFD-11)
- Benefit: Avoid paying 18% IGST and waiting 2-3 months for refund
- Filing Deadline: Before April 1 each year (valid for full financial year)
- Eligibility: No prosecution or Rs 250 lakh+ tax evasion in past 5 years
- Process: Login to GST portal to Services to User Services to LUT to File
What is Export of Services?
When you provide services to clients located outside India and receive payment in foreign currency (convertible), it's classified as export of services. Common examples include software development, consulting, design services, etc.
Conditions for Export of Services
Why File LUT?
Without LUT, you would have to charge 18% IGST on export invoices, pay it to the government, and then claim a refund – a time-consuming process. With LUT, you can invoice at 0% GST directly!
Without LUT
- ✗ Charge 18% IGST
- ✗ Pay GST to government
- ✗ File refund application
- ✗ Wait 2-3 months for refund
- ✗ Cash flow issues
With LUT
- ✓ Invoice at 0% GST
- ✓ No payment to govt
- ✓ No refund process
- ✓ Immediate benefit
- ✓ Better cash flow
How to File LUT: Step-by-Step Guide
Get GST Registration
Mandatory for all exporters, regardless of turnover. Apply through GST portal.
Login to GST Portal
Visit www.gst.gov.in and login with your GSTIN credentials
Navigate to LUT Section
Go to Services > User Services > Furnish Letter of Undertaking
Fill RFD-11 Form
Select financial year, enter business details, and declare undertaking
Submit with DSC/EVC
Sign using Digital Signature Certificate or E-Verification Code
Receive ARN
You'll get Application Reference Number immediately. LUT is now active!
Important Points to Remember
Annual Renewal
LUT is valid for entire financial year. File new LUT every April.
Zero Bond/Bank Guarantee
No security deposit required for filing LUT (unlike earlier bond requirements)
Invoice Format
Mention LUT ARN on all export invoices with 0% GST rate
GSTR-1 Reporting
Report all export invoices in Table 6A of GSTR-1 return
Critical Deadline: File your LUT by April 1st each year for uninterrupted zero-rated exports. If you miss it and export without LUT, you'll have to pay 18% IGST and file for refund (takes 2-3 months). Set a calendar reminder for March 25th. Read our GST for Content Creators guide for complete export rules.
Sample Export Invoice Format
EXPORT INVOICE
Invoice No: INV/2024/001
Date: 15/10/2024
LUT ARN: AD150120XXXXXX
Description: Software Development Services
Amount: $5,000 (INR 4,15,000 @ 83/USD)
IGST Rate: 0% (Export with LUT)
Total: $5,000
Conclusion
Filing LUT is a simple process that saves you from cash flow issues and refund hassles. Every exporter of services should file LUT at the beginning of each financial year to enjoy zero-rated GST benefits.
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