GST Export LUT Tax Savings Calculator

18% IGST Working Capital Relief · Zero-Rated Service Exports · Form RFD-11

Calculate exact working capital saved by filing GST LUT for exporting IT services, software, or freelance work to foreign clients.

✓ 18% IGST Block Avoided ✓ Zero-Rated Supplies

🌐 Export Invoice & Revenue Details

Upfront Working Capital Saved

₹—

Unutilized ITC Refundable: ₹—

Export GST Benefit Breakdown

IGST Avoided Upfront (@ 18%)
ITC Paid on Laptops/Tools
Cash Refundable ITC (Sec 54)
LUT Validity Period 1 Full Financial Year

GST LUT Export Guide for Freelancers & IT Firms

With LUT vs Without LUT Comparison

Without LUT: You pay 18% IGST on export invoices out of pocket and file refund claims with GST authorities.
With LUT: You pay ₹0 IGST upfront, preserving 100% of your export cash flow.

Mandatory FIRC / BIRC Condition

To satisfy zero-rated export rules, foreign payments MUST be realized in convertible foreign exchange (USD, EUR, GBP) supported by FIRC/BIRC certificates from PayPal, Stripe, Payoneer, or banks.

💡 Pro Hack: File Before April 1

LUT is valid for 1 financial year. Always file Form GST RFD-11 online before April 1 to avoid export invoice delays.

Claim Unutilized ITC Refund

Under LUT, you can claim a cash refund for the 18% GST paid on business laptops, cloud servers, and office software under Section 54(3).

🛡️ Add LUT ARN on Invoices

Always print the declaration "Supply Meant for Export Under LUT Without Payment of IGST" along with your LUT ARN on client invoices.

⚠️ 3 Common GST LUT Export Mistakes

  • Receiving Payment in Indian Rupees (INR): Export payments received in INR (unless from Nepal/Bhutan) do NOT qualify as zero-rated exports under LUT.
  • Failing to Realize Payment Within 1 Year: If foreign remittance is not received within 1 year from invoice date, 18% IGST plus interest must be paid.
  • Forgetting Annual LUT Renewal: Exporting under an expired LUT forces you to pay 18% IGST with penalty.

Frequently Asked Questions

What is LUT in GST for exporters and freelancers?
LUT (Letter of Undertaking) filed in Form GST RFD-11 allows registered exporters and freelancers to export goods or services without paying 18% IGST upfront.
What is 'Zero-Rated Supply' under Section 16 of IGST Act?
Export of services to foreign clients (receiving payment in convertible foreign exchange like USD, EUR, GBP) qualifies as a Zero-Rated Supply. Under LUT, zero GST is payable.
What happens if I export services WITHOUT filing LUT?
If you export without LUT, you must pay 18% IGST upfront out of your pocket on every invoice, and then apply for a tax refund from the GST department, locking up working capital for months.
Is FIRC or BIRC mandatory for GST LUT export of services?
Yes! To legally treat service exports as zero-rated, payment MUST be realized in convertible foreign currency, evidenced by a Foreign Inward Remittance Certificate (FIRC/BIRC) from your bank or payment gateway (PayPal, Stripe, Payoneer).
What is the validity period of GST LUT?
An LUT is valid for ONE financial year (April 1 to March 31). Exporters must file a fresh online LUT on the GST Portal prior to April 1 of each new financial year.
Is GST registration mandatory for software export above ₹20 Lakhs?
Yes. If your annual aggregate turnover (domestic + export) exceeds ₹20 Lakhs (₹10 Lakhs for North-Eastern states), GST registration is mandatory.
Can Input Tax Credit (ITC) be refunded under LUT?
Yes! Under LUT, even though you pay ₹0 IGST on export invoices, you can claim a cash refund of unutilized Input Tax Credit (ITC) paid on business purchases (laptops, software subscriptions, office rent).
How to file LUT online on the GST portal?
Log in to GST Portal -> User Services -> Furnish Letter of Undertaking (LUT) -> Fill Form RFD-11 -> Sign via Electronic Verification Code (EVC) or DSC. Instant ARN is generated.

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