Step 04 / 07
Register for GST and file a Letter of Undertaking (LUT)
Exports are zero-rated under GST. With an LUT in Form GST RFD-11 you export without paying IGST, so no money gets stuck waiting for a refund.
- 1Choose your business form and get a PAN
- 2Open a current account with a bank that handles foreign exchange
- 3Get your Importer-Exporter Code (IEC) from DGFT
- 4Register for GST and file a Letter of Undertaking (LUT)
- 5Get an RCMC from the right Export Promotion Council or Board
- 6Get the licences your product needs
- 7Make your first shipment
- Official fee
- Free — no government fee for GST registration or for filing an LUT.
- Time
- LUT is acknowledged online on filing. GST registration time depends on verification — check the status on gst.gov.in.
Under the IGST Act an export is treated as an inter-state supply, and anyone making inter-state taxable supplies of goods must register for GST whatever the turnover. Register on gst.gov.in in the same name and PAN as your IEC.
You then have two routes. Route one: file an LUT and export without paying IGST, then claim a refund of the input tax credit that piles up. Route two: pay IGST on the export and get it refunded automatically once the shipping bill and GST return match. Most small exporters choose the LUT because it keeps cash free.
File the LUT online in Form GST RFD-11 on the GST portal (Services → User Services → Furnish Letter of Undertaking). It is valid for one financial year, so file a fresh one before 1 April each year. Write “Supply meant for export under LUT without payment of IGST” on your export invoices.
Under rule 96A of the CGST Rules, goods exported under LUT must leave India within three months of the invoice date, and payment must come within the time allowed by RBI. If not, you must pay the IGST with interest. Track every invoice against its shipping bill.