Answer

1. F

   Facts

   A Letter of Undertaking (LUT) in form RFD-11 lets a registered exporter of goods or services supply without paying IGST. Without an LUT, you must charge and pay IGST on the export and then claim a refund. It is filed online and has no fee.

2. P

   Provisions and law

   • Sec 16(3), IGST Act 2017Zero-rated supply can be made under bond or LUT without paying IGST, with refund of unused ITC
   • Rule 96A, CGST Rules 2017Export under LUT or bond: goods to be exported within 3 months of invoice and payment for services received within 1 year, else tax with interest
   • Circular 8/2017-GSTLUT available to all exporters except those prosecuted for evasion above ₹250 lakh; valid for the financial year; deemed accepted if not accepted within 3 working days
3. A

   Analysis

   Exports are zero-rated under Sec 16 of the IGST Act. If you are registered and bill a foreign client ₹5,00,000, without an LUT you would pay ₹90,000 IGST and wait for a refund. With an LUT you pay nothing, and you can still claim refund of ITC on your inputs. For most freelancers with GST registration, filing LUT each April is the simplest choice.

4. C

   Conclusion

   1. 1Confirm you are registered and your service qualifies as export.
   2. 2Login to gst.gov.in and open Services, User Services, Furnish Letter of Undertaking.
   3. 3Fill the form for the financial year and sign it.
   4. 4Mention the LUT ARN on your export invoices.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.