A GST LUT (Letter of Undertaking) is a document filed by exporters to export goods or services without paying Integrated GST (IGST). It helps businesses avoid blocking working capital in tax payments.
Instead of paying IGST and claiming refund later, exporters can submit LUT to export tax-free, making it a preferred and hassle-free option.
An LUT is valid for one financial year. It must be renewed every year before the expiry to continue exporting without payment of IGST.
GST LUT Form is a very beneficial facility for exporters. It helps save tax costs, improves cash flow, and makes export operations smooth and efficient. Timely filing of LUT every financial year is highly recommended for all regular exporters.
