📌 Key Takeaway: Learn how Indian exporters, freelancers, and software SaaS companies can export goods and services without paying IGST by filing online Form GST RFD-11.
Export of Goods and Services as 'Zero-Rated Supplies'
Under Section 16 of the Integrated Goods and Services Tax (IGST) Act, 2017, all exports of goods and services outside India, as well as supplies made to Special Economic Zone (SEZ) developers or units, are classified as Zero-Rated Supplies. This legal status allows Indian exporters to operate globally without locking up working capital in tax payments.
Two Routes for Exporting under GST
- Export with Payment of IGST: Pay IGST upfront at applicable rates and subsequently claim an automated refund of the IGST paid from Customs/GST portal. (Locks working capital).
- Export under LUT (Without Payment of Tax): Furnish a Letter of Undertaking (LUT) in Form GST RFD-11 at the beginning of each financial year, export goods/services at 0% tax, and claim refund of accumulated unutilized Input Tax Credit (ITC) under Section 54. (Recommended for healthy cash flow).
Who is Eligible to File Form GST RFD-11?
Any registered taxpayer intending to supply goods or services for export or to SEZ units is eligible to furnish an LUT, provided they have not been prosecuted for tax evasion exceeding ₹250 Lakhs under the CGST Act.
Step-by-Step Online LUT Filing Process on GST Portal
- Log in to gst.gov.in > Services > User Services > Furnish Letter of Undertaking (LUT).
- Select the Financial Year for which LUT is being submitted (e.g., FY 2026-2027).
- Check the 3 mandatory statutory declarations confirming export compliance and foreign remittance realization within FEMA timelines.
- Enter details of two independent, credible witnesses (Name, Occupation, and Full Address).
- Sign and submit using DSC (mandatory for Companies/LLPs) or Aadhaar EVC (for Proprietorships/Partnerships).
- An instant Application Reference Number (ARN) is generated, serving as your legal LUT for the entire fiscal year.