What is the difference between LUT and bond for GST export?

Both let you export without paying IGST upfront. A Letter of Undertaking (LUT) is the default route — filed online once a year on the GST portal with no bank guarantee. A bond is required only where the LUT route is denied (typically where there has been a tax evasion case of Rs2.5 crore or more in any of the past five years) and must be backed by a bank guarantee of up to 15% of the bond amount.

Can I export services without GST registration?

Yes, if your aggregate turnover is below the registration threshold (Rs20 lakh for services, Rs10 lakh in special category states). However, voluntary GST registration plus an LUT is often advisable for credibility, ITC claims and clean FEMA documentation. Once registered, you must file returns regardless of turnover.

What happens if I forget to renew my LUT?

If you raise an export invoice after your LUT lapses, the supply is treated as taxable. You must pay IGST at the applicable rate (typically 18%) with interest under Section 50 CGST and claim a refund under Section 54 — a much slower and more paperwork-heavy route. We renew LUTs at the start of each FY to avoid this.

GST — Export of Services

Relevant for:For Freelancers For Solopreneurs

GST Export of Services — LUT Filing and Zero-Rating for Indian Freelancers

Services exported to overseas clients qualify as zero-rated supplies under Section 16(1) of the IGST Act, 2017 — meaning 0% GST with no refund required when a Letter of Undertaking (LUT) is in place. We file your LUT, advise on invoice format and ensure your export-of-services treatment is watertight.

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What's Included

Eligibility assessment — export of services vs. mixed supply

LUT filing on the GST portal (Form RFD-11) annually before the first export invoice

Invoice format review — USD/GBP/EUR invoice with GSTIN and LUT reference

Place-of-supply analysis under Section 13 IGST — recipient outside India, FEMA receipt condition

GSTR-1 and GSTR-3B treatment for zero-rated supplies

AD-bank coordination for FIRC/FIRA as proof of export realisation

Refund application under Section 54 CGST if LUT lapses or refund route preferred

Our Process

STEP 1

Eligibility Check

Place of supply, recipient country and FEMA receipt validated.

Day 1

STEP 2

LUT Filing

Form RFD-11 filed on the GST portal.

Day 1

STEP 3

Invoice Review

USD/GBP/EUR template with GSTIN and LUT reference.

Day 1

STEP 4

GSTR Reporting

Zero-rated supplies reported correctly in GSTR-1 and GSTR-3B.

Monthly

STEP 5

Annual Renewal

LUT renewed every FY and compliance reviewed.

Yearly (April)

Documents Required

PAN and GSTIN
Previous year's Income Tax Return (ITR)
Bank statement showing inward foreign remittance
Sample client contract or service agreement
FIRC / FIRA copies (if available)
Authorised signatory KYC and digital signature (DSC)

Key Statutory References

Item	Reference
Zero-Rated Supply	Section 16(1), IGST Act 2017
LUT Mechanism	Rule 96A, CGST Rules 2017 — Form RFD-11
Refund Route	Section 54, CGST Act 2017
Place of Supply (Services)	Section 13, IGST Act 2017
FEMA Receipt Condition	FEMA 1999 — service export realisation in convertible FX
Penalty for Non-LUT Export	IGST paid + interest under Section 50, CGST Act

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Frequently Asked Questions

Related Services

International Invoicing & Remittance Freelancer Tax Compliance GST Advisory GST Refund Services For Freelancers

Guides & Resources

GST for Freelancers Billing Foreign Clients

LUT, zero-rating, and FEMA compliance in one guide.

Read →

GST Registration Guide

Step-by-step GST registration for service exporters.

Read →

FEMA Compliance Guide

FEMA rules for receiving foreign remittances.

Read →

File your LUT and bill foreign clients at 0% GST

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Scope of services and important information

This page describes services offered by RTA & Associates, Chartered Accountants. It is published for general information and does not constitute tax, legal, financial or investment advice, nor an offer or solicitation to provide services in any jurisdiction where we are not qualified to do so.

Any engagement is governed by a separate written engagement letter, which sets out the scope of work, the deliverables, the fees and the limits of our responsibility. Nothing on this page forms part of that engagement or varies its terms.

Descriptions of timelines, processes, costs and outcomes are indicative and depend on your specific circumstances and on third parties — regulators, exchanges, banks and counterparties — whose timelines we do not control. Statutory and regulatory requirements change; the current position should be confirmed before you act.

We are Chartered Accountants. Where a matter requires legal advice, advice on the law of a country other than India, or a regulated investment recommendation, we will say so and you should take advice from an appropriately qualified and licensed adviser in the relevant field and jurisdiction.