Export Invoice › Export with IGST or under LUT

Export with IGST, or under LUT without IGST?

Exports of goods and services, and supplies to SEZ units and developers, are "zero-rated": no GST should stay in the price. There are two ways to get there, and the invoice shows which one you chose.

Option 1: under LUT or bond, without IGST

Before exporting, file a Letter of Undertaking in FORM GST RFD-11 on the GST portal (or a bond). It is usually filed for each financial year.
The invoice carries 0% IGST and the "under bond or letter of undertaking without payment of integrated tax" endorsement. Type the LUT reference (ARN) in the maker.
You can then claim a refund of the input tax credit you could not use.
Time limits (Rule 96A): goods must leave India within 3 months of the invoice date, and for services the payment must come in foreign exchange (or in rupees where the RBI allows) within 1 year. If not, you pay the tax with interest within 15 days after that period, unless the Commissioner allows more time.

Option 2: with IGST paid

Charge IGST on the invoice at the normal rate and pay it in your GSTR-3B.
For goods, the shipping bill filed with customs works as the refund application. The export invoice details you give in Table 6A of GSTR-1 are matched with the shipping bill, and the IGST refund is paid to your bank account.
For services and SEZ supplies, the refund is applied for on the GST portal.

SEZ supplies

A supply to an SEZ unit or developer is treated as an inter-state supply even when the SEZ is in your own state, so it always carries IGST (or 0% under LUT), never CGST and SGST. The SEZ buyer's GSTIN goes on the invoice, and the e-invoice type is SEZWP or SEZWOP.

Which is better?

	Under LUT	With IGST
Cash	No tax paid up front	Tax paid first, refunded later
Paperwork	LUT once a year; refund of unused credit if you want it	Refund through the shipping bill for goods
Risk	Tax + interest if goods aren't exported in 3 months or service payment doesn't come in 1 year	Refund held if shipping bill and GSTR-1 don't match

Most small exporters use the LUT. Talk to your accountant before choosing, especially for goods where special refund rules apply.

Checked on 5 November 2026 against the CGST Rules (Rules 46, 96 and 96A). Refund rules change; check the GST portal and CBIC circulars.

Make your export or SEZ invoice now.Open the maker