GST Letter of Undertaking (LUT)

A Letter of Undertaking (LUT) is a declaration submitted by exporters to the GST authorities allowing them to export goods or services without paying Integrated GST (IGST).

This is applicable under Section 16 of the IGST Act, 2017, primarily for zero-rated supplies.

Who Can Apply for LUT?

Registered GST exporters in India.

Exporters supplying goods or services without charging IGST.

Applicants who do not have a default in GST payments.

Note: Businesses with pending tax dues cannot apply for LUT.

Documents Required for LUT

GST Registration Certificate
PAN of the business
Bank account details of the exporter
Letter of Undertaking on company letterhead
Copy of past GST return filings (if required)

Benefits of Filing LUT

Zero IGST Payment

Export goods/services without paying IGST upfront.

Faster Refunds

Avoids delay in claiming GST refunds on inputs.

Working Capital

Reduces working capital burden for exporters.

Legal Requirement

Mandatory for availing zero-rated export benefits.

Important Notes

LUT must be renewed annually before the start of a new financial year.
If the exporter defaults on GST payments or violates provisions, LUT may be canceled.
Exporters can also opt to pay IGST and claim refund later, but LUT avoids upfront tax payment.

GST Letter of Undertaking

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