Exporting Under GST (2026): LUT vs IGST Route, Zero-Rating & Faster Refunds

Bill exports LUT-ready, in any currency

Zero-rated invoices still have to be correct — the right LUT declaration, the customer’s country, the foreign currency. GST Bill Maker creates LUT-ready export invoices with multi-currency support, so your paperwork matches your refund claim. Browse the Knowledge Center for more GST guides for exporters.

Q: I export tiny parcels — does the ₹1,000 minimum still stop me? A: Not if you export goods on the IGST route — that’s now carved out of the Section 54(14) minimum. Other refund types still carry the ₹1,000 floor.

Q: Is exporting services zero-rated automatically? A: Only if all five conditions of Section 2(6) are met, including payment in convertible foreign exchange and an overseas recipient that isn’t just a branch of the supplier.

Bill exports LUT-ready, in any currency

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Q: LUT or pay IGST — which is better? A: For most exporters the LUT route is better because no cash is blocked. The IGST route can suit goods exporters who prefer the automatic customs refund, or those sitting on large unused ITC.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Miss any one — for instance, a foreign client’s Indian branch is the real recipient — and the supply is taxable, not zero-rated. Our SaaS & software guide works through this for digital exporters.

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Section 54(14) says a refund below ₹1,000 is not granted — historically a real problem for small exporters shipping low-value parcels by courier or post. That threshold has now been carved out for goods exported with IGST payment, so small exporters on the IGST route are no longer blocked by the ₹1,000 floor. For other refund types the minimum still applies, so batch small claims where you can.

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

For the LUT route (and for service exports on the IGST route), you file a refund application online in Form RFD-01. The portal issues an acknowledgement in RFD-02 within 15 days if the claim is complete, and the proper officer must process it within 60 days. To speed cash flow, exporters can now also receive a 90% provisional refund up front, with the balance after verification. For goods exported on the IGST route, the shipping bill doubles as the refund claim and the IGST is refunded through the customs system — usually without a separate RFD-01.

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

The LUT route is what most exporters use: you don’t lock up cash paying IGST you’ll only reclaim later. The IGST route can suit exporters of goods, because the shipping bill itself acts as the refund application and the IGST is often refunded automatically through customs — no separate RFD-01.

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

	LUT route	IGST route
What you do	Export without paying IGST	Pay IGST on the export, then claim it back
What you refund	Unutilised input tax credit	The IGST you paid
Paperwork upfront	File an LUT once a year	No LUT; pay tax on each export
Best for	Most exporters — no cash blocked in IGST	Those with large unused ITC, or who prefer the auto-refund on goods

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Two ways to export — pick your route

	LUT route	IGST route
What you do	Export without paying IGST	Pay IGST on the export, then claim it back
What you refund	Unutilised input tax credit	The IGST you paid
Paperwork upfront	File an LUT once a year	No LUT; pay tax on each export
Best for	Most exporters — no cash blocked in IGST	Those with large unused ITC, or who prefer the auto-refund on goods

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Two ways to export — pick your route

	LUT route	IGST route
What you do	Export without paying IGST	Pay IGST on the export, then claim it back
What you refund	Unutilised input tax credit	The IGST you paid
Paperwork upfront	File an LUT once a year	No LUT; pay tax on each export
Best for	Most exporters — no cash blocked in IGST	Those with large unused ITC, or who prefer the auto-refund on goods

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

Exports under GST are zero-rated — you shouldn’t bear any GST on what you sell abroad. But “zero-rated” doesn’t mean “do nothing”: you have to choose a route, keep the paperwork current, and file the right refund claim to actually get your money back. This is the operational companion to our place-of-supply guide for exporters — here we focus on the mechanics: LUT versus the IGST route, the conditions for zero-rating, and how refunds actually flow (including the new relief that helps small exporters). Position as of FY 2026-27.

At a glance

Exports of goods and services are zero-rated under Section 16 of the IGST Act.
Two routes: LUT (export without paying IGST, refund unutilised ITC) or pay IGST and claim it back.
An LUT (Form RFD-11) is valid for one financial year only — re-file every year, before 31 March, before you export.
Refunds are claimed in Form RFD-01; the officer must process within 60 days, with acknowledgement in 15.
The ₹1,000 minimum refund (Section 54(14)) still applies generally — but goods exported on the IGST route are now carved out, helping small exporters.
Export of services must meet all five conditions of Section 2(6) IGST to qualify.

Two ways to export — pick your route

	LUT route	IGST route
What you do	Export without paying IGST	Pay IGST on the export, then claim it back
What you refund	Unutilised input tax credit	The IGST you paid
Paperwork upfront	File an LUT once a year	No LUT; pay tax on each export
Best for	Most exporters — no cash blocked in IGST	Those with large unused ITC, or who prefer the auto-refund on goods

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

At a glance

Exports of goods and services are zero-rated under Section 16 of the IGST Act.
Two routes: LUT (export without paying IGST, refund unutilised ITC) or pay IGST and claim it back.
An LUT (Form RFD-11) is valid for one financial year only — re-file every year, before 31 March, before you export.
Refunds are claimed in Form RFD-01; the officer must process within 60 days, with acknowledgement in 15.
The ₹1,000 minimum refund (Section 54(14)) still applies generally — but goods exported on the IGST route are now carved out, helping small exporters.
Export of services must meet all five conditions of Section 2(6) IGST to qualify.

Two ways to export — pick your route

	LUT route	IGST route
What you do	Export without paying IGST	Pay IGST on the export, then claim it back
What you refund	Unutilised input tax credit	The IGST you paid
Paperwork upfront	File an LUT once a year	No LUT; pay tax on each export
Best for	Most exporters — no cash blocked in IGST	Those with large unused ITC, or who prefer the auto-refund on goods

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.

Bill exports LUT-ready, in any currency

At a glance

Exports of goods and services are zero-rated under Section 16 of the IGST Act.
Two routes: LUT (export without paying IGST, refund unutilised ITC) or pay IGST and claim it back.
An LUT (Form RFD-11) is valid for one financial year only — re-file every year, before 31 March, before you export.
Refunds are claimed in Form RFD-01; the officer must process within 60 days, with acknowledgement in 15.
The ₹1,000 minimum refund (Section 54(14)) still applies generally — but goods exported on the IGST route are now carved out, helping small exporters.
Export of services must meet all five conditions of Section 2(6) IGST to qualify.

Two ways to export — pick your route

	LUT route	IGST route
What you do	Export without paying IGST	Pay IGST on the export, then claim it back
What you refund	Unutilised input tax credit	The IGST you paid
Paperwork upfront	File an LUT once a year	No LUT; pay tax on each export
Best for	Most exporters — no cash blocked in IGST	Those with large unused ITC, or who prefer the auto-refund on goods

The LUT: file it every year, before you export

A Letter of Undertaking (Form RFD-11) is your promise to export without paying IGST. Two rules catch people out:

It is valid for one financial year only and expires on 31 March — it does not roll over. File a fresh LUT for each new financial year (by 31 March for the year ahead).
It must be furnished before you make the zero-rated supply. Export first and file later, and that supply may not be covered.

Filing is free and online on the GST portal — select the financial year, submit RFD-11, done. Diarise it every March so your export invoicing never runs on a lapsed LUT.

How refunds actually flow (Form RFD-01)

The ₹1,000 minimum — and the new relief

Exporting services: the five conditions (Section 2(6))

A supply of services counts as an “export of services” — and so qualifies for zero-rating — only if all five of these hold:

The supplier is located in India.
The recipient is located outside India.
The place of supply is outside India.
Payment is received in convertible foreign exchange (or in INR where the RBI permits).
The supplier and recipient are not merely establishments of the same person (i.e. not a branch billing its own head office).

Common mistakes to avoid

Letting the LUT lapse — it expires every 31 March; an export on a lapsed LUT isn’t covered.
Filing the LUT after exporting — it must be furnished before the supply.
Assuming all forex receipts qualify — service exports must satisfy all five Section 2(6) conditions.
Sitting on unutilised ITC — claim the refund; don’t let credit pile up unclaimed.
Mixing up the routes — LUT refunds unutilised ITC; the IGST route refunds the tax you paid. Don’t claim both.

Frequently asked questions

Q: Do I need to file a new LUT every year? A: Yes. An LUT is valid for one financial year and expires on 31 March. File a fresh RFD-11 for each year, before you export.

Q: How long does a GST refund take? A: The officer must process RFD-01 within 60 days, with acknowledgement in 15. A 90% provisional refund can be released up front to ease cash flow.