For making exports without payment of IGST, a Letter of Undertaking (LUT) is required to be filed in GST RFD-11 form on the common portal.
Time Limit for Filing
Letter of undertaking (LUT) shall have to be filed/submitted online before exporting the goods/services.
Taxpayers Not Eligible For filing LUT
Taxpayers who have been prosecuted for tax evasion for an amount of Rs. 2.5 Crores or above under the act is not eligible to furnish LUTs. The validity of such LUT’s is for a period of one year (till the end of the financial year).
Export Bond Filing
Taxpayers who are not eligible for filing/ submitting a Letter of Undertaking (LUT) are required to furnish an export bond along with a bank guarantee.
Taxpayers doing exports also have an option to furnish a running bond, so that export bond need not be executed for each and every export transaction