Letter of
Undertaking.
Avoid paying IGST on exports by submitting your LUT on time. Our experts ensure quick, error-free LUT filing so your international business stays tax-efficient.
Who is Eligible?
Under Section 16 of the IGST Act, registered businesses involved in exporting goods or services can apply for an LUT, provided they meet specific criteria.
Clean Legal Record
The applicant should not have been prosecuted for any tax evasion offense exceeding ₹2.5 Crores under GST or any other similar laws.
Proof of Overseas Supply
The exporter must be able to prove that the goods or services are genuinely destined for overseas markets or SEZ units.
Foreign Exchange Realization
The exporter must agree and prove that the export proceeds are received within the specified time frame outlined by the RBI.
The Export Advantage.
Why filing an LUT is the smartest financial move for international trade.
Zero Rate of Tax
The main benefit of filing an LUT in GST is that it allows exporters to conduct business without the burden of paying taxes upfront on exports. This effectively makes the export of goods and services zero-rated.
Faster Refund Process
Since exporters don’t pay IGST, they don’t need to claim refunds, which can often be a lengthy and cumbersome process. The LUT ensures that the export transaction proceeds without any tax delays.
Improved Cash Flow
By eliminating the need to pay taxes upfront, businesses can preserve liquidity and vastly improve cash flow. This is especially crucial for small and medium-sized enterprises (SMEs) involved in international trade.
Simplified Procedures
The LUT mechanism drastically simplifies the overall export procedure by reducing unnecessary paperwork and eliminating the complex tracking of tax payments and subsequent refund claims on exports.
Important Rules.
Ensure you understand these key regulations to maintain your zero-rated export status.
Financial Year Validity
An LUT remains valid for the current financial year from the date of its submission. Example: If an LUT was furnished in FY 2025-2026, the date of expiry is 31st March 2026. Therefore, you must file a fresh LUT for FY 2026-2027.
No Bank Guarantee
Authorized Signatory
Questions?
Exporting soon?
Don't tie up your working capital in IGST payments. File your LUT today and export tax-free.