GST Registration for Exporters — LUT Filing, Zero-Rated Supply & Refunds

Exports are zero-rated — but only if your GST paperwork is right

Exports of goods and services are zero-rated supplies under Section 16 of the IGST Act — meaning no GST is charged to the foreign buyer, and exporters can either export without paying IGST (under a Letter of Undertaking) or pay IGST and claim a refund later. Getting this filing right the first time is the difference between fast refunds and locked-up working capital for months. We handle registration, LUT filing and refund applications for goods exporters, IT/ITES service exporters and freelancers billing overseas clients.

Who needs this service

• Goods exporters shipping through ports/airports needing GST registration and export documentation aligned
• IT/ITES, BPO and software service exporters billing clients in the US, UK, EU and elsewhere
• Freelancers and consultants with foreign clients wanting to claim export benefits and avoid IGST on invoices
• Merchant exporters purchasing goods at a concessional 0.1% GST rate for export
• Existing exporters with accumulated ITC stuck due to inverted duty structure or unfiled refund claims

Documents required

• PAN, Aadhaar and business constitution documents (proprietorship/partnership/company)
• IEC (Import Export Code) from DGFT — mandatory for goods exports
• Bank account details with AD Code registered at the port of export (for goods exporters)
• Sample export invoices/contracts showing foreign buyer details and payment terms
• FIRC (Foreign Inward Remittance Certificate) or bank realisation certificate for past exports, if claiming refund

Process & timeline

1. GST registration completed (if not already registered), followed by IEC registration for goods exporters
2. Letter of Undertaking (LUT) filed in Form RFD-11 — valid for the full financial year, renewable annually
3. Export invoices raised without IGST (under LUT) or with IGST (for refund route), correctly marked as zero-rated supply
4. Monthly/quarterly refund applications (RFD-01) filed for accumulated ITC or IGST paid on exports

Turnaround: LUT filing — same day to 1 working day. Refund processing by GST department — typically 15–60 days depending on scrutiny.

LUT vs paying IGST and claiming refund — which route to choose

Most exporters prefer the Letter of Undertaking (LUT) route — you export without charging or paying IGST, which avoids locking up cash upfront. The LUT is filed once a year in Form RFD-11 and requires no bank guarantee for most exporters (only defaulters or those prosecuted for tax evasion above ₹2.5 crore need a bond with bank guarantee). Alternatively, you can pay IGST on exports and later claim a refund via RFD-01, which is often faster to process but ties up working capital until the refund clears.

Refund of accumulated Input Tax Credit

Under the LUT route, exporters accumulate ITC on inputs (raw materials, services) that has no output liability to offset against, since exports are zero-rated. This accumulated credit can be claimed as a refund under Rule 89, computed using the formula: (Turnover of zero-rated supply × Net ITC) ÷ Adjusted Total Turnover. We prepare and file these refund applications with proper reconciliation statements (CA certificate required above ₹2 lakh) to minimise department queries and speed up processing.

Service exporters — proving "export of services"

For IT/ITES freelancers and consultants, export of services status requires meeting all conditions under Section 2(6) of the IGST Act: supplier in India, recipient outside India, place of supply outside India, payment received in convertible foreign exchange (or INR as permitted by RBI), and supplier/recipient not merely establishments of the same entity. We verify FIRC/bank certificates match your invoices to substantiate this classification if questioned.

Why Tax Easy India

• LUT filed and renewed on time every financial year, avoiding a lapse into the IGST-and-refund route by default
• Refund applications (RFD-01) prepared with correct ITC reconciliation and CA certification where required
• FIRC/BRC matching for service exporters to defend zero-rated classification
• Coordination with IEC/DGFT for goods exporters alongside GST compliance