GST
LUT (Letter of Undertaking) — Meaning
Declaration filed by exporters on the GST portal to export goods/services without paying IGST.
What is LUT (Letter of Undertaking)?
A Letter of Undertaking (LUT) is filed in Form GST RFD-11 on the GST portal by registered exporters. It allows them to export goods or services without paying Integrated GST (IGST) on the export transaction. Without LUT, exporters must pay IGST and then claim a refund — tying up working capital. LUT must be filed before the first export of each financial year. LUT filers can claim refund of accumulated ITC (from input purchases). Export of services, software exports and merchandise exports are all eligible.
More GST terms
GSTIN (Goods and Services Tax Identification Number)
Unique 15-digit registration number assigned to every GST-registered business.
GSTR-1
Monthly/quarterly return for outward supplies (sales) filed by GST-registered businesses.
GSTR-3B
Monthly summary return where GST liability is declared and payment made.
GSTR-9 (GST Annual Return)
Annual reconciliation return filed by regular GST taxpayers, summarising the full year's GST transactions.
ITC (Input Tax Credit)
Credit available to GST-registered businesses for GST paid on business purchases, which reduces their GST payable.
