# Letter of Undertaking (LUT) Filing Guide — Form GST RFD-11

## Overview & Legal Basis
Under **Rule 96A of the CGST Rules, 2017**, any registered person availing the option to supply goods or services for export without payment of integrated tax (IGST) is required to furnish a **Letter of Undertaking (LUT)** in **Form GST RFD-11** prior to the export.

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## 1. Eligibility Criteria
- **Who is eligible**: All registered exporters of goods and services.
- **Disqualification condition**: An exporter who has been prosecuted for any offense under the CGST Act / IGST Act or any existing law where the amount of tax evaded exceeds **₹250 Lakhs (₹2.5 Crore)** cannot file an LUT. Such taxpayers must furnish a **Bond with Bank Guarantee** (typically 15% of the estimated tax liability).

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## 2. Validity Period & Timing
- **Validity**: An LUT is valid for **one entire Financial Year (April 1 to March 31)**.
- **Filing Window**: Must be filed online before commencing exports for the financial year (typically in March/April for the upcoming FY).
- **Lapse / Belated Filing**: If goods/services are exported before filing the LUT for that FY, the tax authorities may demand IGST along with interest under Section 50(1). However, CBIC Circular No. 125/44/2019-GST clarifies that substantive export benefits should not be denied solely for procedural delays if proof of actual export is available, subject to condonation by the jurisdictional tax officer.

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## 3. Step-by-Step Filing Process on the GST Portal

1. **Login**: Access [gst.gov.in](https://www.gst.gov.in) with valid credentials.
2. **Navigate**: Go to **Services** $\rightarrow$ **User Services** $\rightarrow$ **Furnish Letter of Undertaking (LUT)**.
3. **Select Financial Year**: Choose the financial year for which the LUT is being furnished (e.g., `2026-2027`).
4. **Previous LUT Reference**: If an LUT was furnished for the previous FY, enter the previous LUT Reference Number / ARN.
5. **Declarations / Undertakings**: Exporter must tick the three mandatory statutory checkboxes:
   - Export of goods/services will be completed within specified timeframes (3 months for goods from invoice date; 1 year for services for receipt of foreign convertible exchange).
   - In case of failure to export or realize payment, exporter undertakes to pay IGST along with 18% interest per annum.
   - Taxpayer is not prosecuted for tax evasion exceeding ₹2.5 Crore.
6. **Witness Details**: Enter details of two independent witnesses:
   - Full Legal Name
   - Complete Residential / Business Address
   - Occupation
7. **Sign & Submit**:
   - For Companies / LLPs: Mandatory **Digital Signature Certificate (DSC - Class 3)**.
   - For Proprietorships / Partnerships: **Electronic Verification Code (EVC)** via Aadhaar OTP.
8. **Acknowledgement**: Instant generation of **Application Reference Number (ARN)**. Download the signed LUT certificate for bank, CHA, and customs records.

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## 4. Mandatory Export Timelines & Default Consequences

| Export Category | Statutory Requirement | Default Condition | Remedy if Lapsed |
| :--- | :--- | :--- | :--- |
| **Goods** | Must be exported out of India within **3 months** from the date of the export invoice. | Failure to ship goods within 3 months triggers liability to pay IGST with 18% interest within 15 days. | File extension application or pay IGST + interest, then claim refund once shipped. |
| **Services** | Foreign inward remittance must be received in convertible foreign exchange within **1 year** from the date of the export invoice (or within RBI approved period). | Failure to receive foreign payment requires payment of IGST + 18% interest. | Retain FIRC / BRC from Authorized Dealer Bank as statutory proof of realization. |

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## 5. Mandatory Invoice Declaration String
Every export invoice issued under LUT must prominently feature the following statutory endorsement:

```text
"SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX"
```