What is an LUT in GST? Freelancer's guide
The Letter of Undertaking is a short declaration that decides whether you invoice foreign clients at zero tax or pay 18% IGST first and wait for a refund. Filing it is free and takes a few minutes, but it expires every year, which is why it is one of the most common gaps in a freelancer's GST file.
What an LUT is
LUT stands for Letter of Undertaking. Under Rule 96A of the CGST Rules, you promise to export and bring in payment in foreign exchange within the time the rules allow, and in return you supply without paying integrated tax. The GST for freelancers with foreign clients guide explains when you need to register. This article covers the LUT itself.
Who can file one
Only a registered person. An unregistered freelancer has nothing to file. Most exporters need no bond or bank guarantee, and the facility is withdrawn only for those prosecuted for tax evasion above ₹2.5 crore. If you export services regularly and are registered, it is almost always the better route.
How to file it
- Log in to the GST portal with your GSTIN.
- Open the LUT application: under Services, then User Services, furnish a Letter of Undertaking in Form GST RFD-11. Menu labels change, so follow the portal's current wording.
- Pick the financial year and fill in the details.
- Authenticate: EVC for a proprietor, digital signature for a company.
- Submit, download the acknowledgement and note the LUT reference number once accepted.
What goes on your invoice
Every export invoice carries a line stating that the supply is meant for export under LUT without payment of integrated tax, with the LUT reference number. The export invoice guide shows where that line sits.
When to file and when to renew
An LUT is valid for one financial year and ends on 31 March. File the new one before your first export invoice of the year, which for most people means the first days of April. A lapsed LUT leaves later invoices uncovered. Put the renewal in your calendar each March.
LUT compared with paying IGST
| LUT route | Pay IGST, then claim a refund | |
|---|---|---|
| Cash flow | No tax paid on exports | Tax paid up front and held until the refund arrives |
| Paperwork | One filing a year | A refund claim for each period |
| Fits | Regular exporters of services | Cases where an LUT is not available |
The refund route has its own steps, covered in how SaaS exporters claim GST refunds with a FIRA.
The payment condition
The LUT comes with a condition that payment must arrive within the period the rule sets, generally one year from the invoice date unless extended. If the money does not arrive in time, you pay the IGST with interest. Your proof of receipt is the FIRA, explained in what a FIRA is and FIRA versus FIRC. The RBI also changed export realisation and declaration rules in October 2026, so read the EDF guide alongside this one.
If your LUT has already lapsed
File a fresh one immediately. It protects invoices raised after acceptance. For invoices raised during the gap, ask your CA whether to pay IGST on them or treat them another way, since the right answer depends on dates and filings. If you earn through Fiverr or Upwork, the GST for platform freelancers guide covers how the LUT fits those payouts.
DashX issues a FIRA on every payment, which is the document the LUT condition is checked against. This article is general education and not tax advice.
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