Question 1

What is a GST LUT (Letter of Undertaking) and who needs it?

Accepted Answer

A Letter of Undertaking (LUT) under Form GST RFD-11 is a statutory facility under Section 16 of the IGST Act allowing Indian exporters of goods and services to export overseas without paying upfront Integrated GST (IGST). It is essential for IT/ITeS software exporters, SaaS companies, freelancers, and merchant exporters to avoid locking up working capital.

Question 2

How long is a filed GST LUT valid for?

Accepted Answer

A GST LUT is valid for one whole financial year (from 1st April to 31st March). Exporters must file a fresh LUT at the beginning of each financial year (in March or April) to continue exporting without paying IGST. TaxQue provides automated annual renewal support.

Question 3

What happens if I export services or software without filing an LUT?

Accepted Answer

If you export without a valid LUT in place, your export is treated as a taxable supply, requiring you to pay 18% IGST upfront from your pocket and then wait months for an official tax refund. Filing an LUT with TaxQue takes only a few hours and completely eliminates this cash-flow burden.

Question 4

Can freelancers, IT developers, and consultants apply for an LUT?

Accepted Answer

Yes. Any registered GST taxpayer receiving foreign inward remittances for services (such as software coding, design, consulting, marketing) from clients outside India can file an LUT, provided payments are received in convertible foreign exchange (or INR where permitted by RBI).

Question 5

What documents are required to file an LUT on the GST portal?

Accepted Answer

You only need your active GSTIN credentials, the names and addresses of two independent witnesses, and the Digital Signature (DSC) or Aadhaar OTP of the authorized signatory. Zero complicated paperwork is needed.

Question 6

Who will process my LUT application at TaxQue?

Accepted Answer

Your Form GST RFD-11 is prepared and verified by our GST export compliance team and authorized by a Chartered Accountant, ensuring instant generation of the official government LUT Acknowledgment.

Question 7

How fast can TaxQue deliver my approved GST LUT certificate?

Accepted Answer

Our direct portal integration allows us to draft, verify witness details, and submit Form GST RFD-11 within 2 to 4 hours on the same business day.

Question 8

What are the two witness details required in the LUT form?

Accepted Answer

The GST portal requires the full name, occupation, and residential address of two independent individuals (such as employees, friends, or relatives). They do not need to sign any physical paper; only their demographic details are entered.

Question 9

What is the difference between exporting under LUT vs exporting with IGST payment?

Accepted Answer

Exporting under LUT requires zero upfront tax payment—you export tax-free and can claim refund of unutilized input tax credit (ITC) on your domestic expenses. Exporting with IGST requires paying 18% tax on every export invoice and waiting for Customs/GST to refund it back.

Question 10

What is the Foreign Inward Remittance Certificate (FIRC) / FIRA requirement?

Accepted Answer

To legally prove that an export of service was completed under LUT, you must receive payment in convertible foreign exchange within 1 year and obtain a Foreign Inward Remittance Certificate (FIRC) or Advice (FIRA) from your bank. TaxQue guides you on organizing your bank FIRAs for audit safety.

Question 11

Are supplies to SEZ (Special Economic Zone) units eligible for LUT?

Accepted Answer

Yes. Under Section 16(1)(b) of the IGST Act, supplies of goods or services to Special Economic Zone (SEZ) developer or unit are treated as 'Zero-Rated Supplies' and can be made without paying IGST under an active LUT.

Question 12

Can a business prosecuted for tax evasion file an LUT?

Accepted Answer

Under Rule 96A, any person who has been prosecuted for any offense under the CGST/IGST Act where the tax evaded exceeds ₹2.5 Crore is barred from filing an LUT and must furnish a Bank Guarantee with an export bond instead. For all other taxpayers, LUT is granted unconditionally.

Question 13

Do I have to mention the LUT number on my export invoices?

Accepted Answer

Yes. Every export invoice must carry the mandatory statutory declaration: 'Supply Meant For Export Under Letter of Undertaking Without Payment of Integrated Tax' along with your official LUT Application Reference Number (ARN).

Question 14

What if I fail to export goods within 3 months of issuing an LUT invoice?

Accepted Answer

Under Rule 96A(1), if physical goods are not exported out of India within 3 months from the date of the export invoice, the exporter must pay the applicable IGST with interest within 15 days. Our team monitors your dispatch timelines to ensure safety.

Question 15

How do I claim refund of input tax credit (ITC) on expenses incurred for zero-rated exports?

Accepted Answer

Because you do not pay output tax under LUT, your input tax credit accumulates in your electronic credit ledger. TaxQue files Form GST RFD-01 to claim cash refunds of accumulated ITC on office rent, software tools, and raw materials directly into your bank account.

Question 16

What is the fee for filing an LUT with TaxQue?

Accepted Answer

We offer an affordable, fixed-price LUT filing package for the entire financial year with zero hidden charges and instant delivery of your official ARN certificate.

Feature & Deliverable Matrix	Basic	Standard★ Most Popular	Premium
Complete Sales & Purchase Invoices Scrutiny	✓	✓	✓
Statutory GST Portal Application & Return Computation	✓	✓	✓
Pre-Submission ITC Reconciliation with GSTR-2B	✓	✓	✓
Official Government Filing ARN & Acknowledgment Receipt	✓	✓	✓
Transparent Process with Direct Portal Status Tracking	✓	✓	✓
Assigned Dedicated Senior GST Practitioner & Tax Manager	—	✓	✓
Fast-Track Priority Queue for Expedited Verification	—	✓	✓
Error-Free HSN / SAC Code Classification & Reverse Charge Check	—	✓	✓
Departmental Query Response & Jurisdictional Officer Clarifications	—	✓	✓
Full Year GSTR-9 Annual Return Filing & Reconciliation Audit	—	—	✓
Comprehensive Defense for ASMT-10 & DRC-01 Show Cause Notices	—	—	✓
Strategic Tax Planning to Legally Maximize Input Tax Credit	—	—	✓
Direct On-Demand Phone & Video Consultation with Senior Partner	—	—	✓

Document Category	Specific Details Required	Format / Specifications
Active GSTIN Registration	Form GST REG-06 Certificate and login credentials	Active regular / SEZ GST registration
Authorized Signatory Proof	PAN and Aadhaar of Authorized Signatory / Director / Partner	Aadhaar linked mobile for EVC / Class 3 DSC
Two Witnesses Details	Name, Address, Occupation, and ID Proof of 2 independent witnesses	Mandatory requirement under Form RFD-11
IEC Code (For Goods Exporters)	Import Export Code issued by DGFT	Active 10-digit PAN-based IEC

Compliance Event	Statutory Due Date	Impact of Delay / Non-Filing
Annual LUT Filing for Upcoming FY	Before 31st March (Prior to start of new FY)	Must pay IGST on export invoices until LUT is filed
Export of Goods Realization	Within 3 months from export invoice date	Must pay IGST + 18% p.a. interest under Section 50
Export of Services Realization	Within 1 year from invoice date (or RBI FIRC time)	Must pay IGST + 18% p.a. interest if foreign forex is not realized

Exporter Category	Facility Available	Mandatory Conditions
Regular Registered Exporters	Letter of Undertaking (LUT)	No prosecution under CGST/IGST Act for tax evasion > ₹2.5 Crore
Exporters Prosecuted for Offenses	Export Bond with Bank Guarantee	Must furnish hard-copy Bond on non-judicial stamp paper with 15% Bank Guarantee
SEZ Units & Developers	Letter of Undertaking (LUT)	Eligible for zero-rated supplies to domestic/overseas markets

Parameter	TaxQue Managed LUT Service	Unassisted Self-Filing	General Accounting Portal
Turnaround Time	2 to 4 hours (Instant ARN)	Requires manual navigation	24 to 48 hours delay
Export Invoicing Guidance	Provides compliant export invoice template with LUT text	Zero guidance (risk of incorrect invoicing)	Basic guidance only
Foreign Remittance (FIRC) Check	Advisory on RBI realization timeframes (Rule 96A)	Ignored (leads to unexpected IGST notices)	No Forex advisory

Accounting

GST LUT Filing

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Right Plan For GST LUT Filing

GST LUT (Letter of Undertaking)

What is GST LUT Filing?

Rule 96A Export Realization Mandate

How to Get Started

Eligibility Verification & Witness Data Collection

Form GST RFD-11 Online Preparation

Instant ARN Generation & LUT Certificate Delivery

Documents Required for GST LUT Filing

Statutory Validity & Deadlines for GST LUT

Eligibility Criteria & Bond Thresholds for Exporters

Why Choose GST LUT Filing

Same-Day Instant LUT Generation

FIRC & Invoicing Compliance Advisory

Annual Automated Renewal Tracking

Eligibility Criteria for GST LUT Filing

1Qualifying Exporters

TaxQue LUT Advisory vs Unassisted Filing

Key Features of TaxQue GST LUT Filing

Instant ARN Delivery

1-Year Validity Coverage

Export Invoice Template

Frequently Asked Questions

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