Exports under LUT Refund Overview
📌 TL;DR - Exports under LUT Refund Services at a Glance
Exports of goods and services are zero-rated under Section 16 of the IGST Act 2017. Under the LUT route (Rule 96A read with Rule 89), an exporter files Form GST RFD-11 to export without paying IGST and then claims refund of accumulated ITC via Form GST RFD-01. The Rule 89(4) formula applies. The LUT for FY 2026-27 must be filed before 31 March 2026.
Exports of goods and services from India are zero-rated supplies under Section 16 of the IGST Act 2017. Section 16(3) gives the exporter two refund routes - supply under bond or LUT without payment of IGST and claim refund of accumulated unutilised ITC under Rule 89, or supply on payment of IGST and claim refund of the IGST under Rule 96 with the shipping bill itself acting as the refund application. The LUT route preserves working capital and is the dominant route for IT services, SaaS, and software product exporters. The IGST-paid route is faster and auto-processed through ICEGATE for goods exporters.
The Letter of Undertaking is filed in Form GST RFD-11 on the GST portal under Rule 96A of the CGST Rules 2017, originally notified by Notification No. 16/2017-Central Tax dated 07 July 2017. The LUT is valid for one financial year, and a fresh LUT must be filed before the first export of every new financial year. For FY 2026-27, the deadline is 31 March 2026 - missing it means every export invoice after 1 April 2026 attracts IGST that must then be paid and refunded separately, blocking working capital. Patron Accounting LLP files RFD-11 LUT, structures the LUT-versus-IGST-paid choice by working capital impact, prepares the Rule 89(4) Net ITC computation, and files RFD-01 with the Statement 3 export annexure.
| Parameter | Detail |
|---|---|
| Governing Provision | Section 16(3)(a) of IGST Act 2017 read with Rule 96A and Rule 89 of CGST Rules 2017 |
| LUT Form | Form GST RFD-11 (Notification No. 16/2017-CT dated 07 July 2017) |
| LUT Validity | One financial year (1 April to 31 March). Fresh LUT required every FY before first export. |
| LUT Deadline FY 2026-27 | 31 March 2026 (or before first export of FY 2026-27, whichever is earlier) |
| Refund Form | Form GST RFD-01 - category 'Refund of ITC on Export of Goods or Services without Payment of Tax' |
| Time Limit | 2 years from relevant date under Section 54(1) - date ship leaves India for goods, date of FX receipt or invoice (whichever later) for services |
| Authority | Jurisdictional GST officer, RFD-02 acknowledgement, RFD-06 sanction order, ICEGATE for IGST-paid route |
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