What is Filing Letter of Undertaking (LUT) for Exports?
Nexa Consultancy | Startup & Finance Glossary
Exporters of goods or services can export without paying IGST by filing a Letter of Undertaking (LUT) with the GST department. This is a declaration that they will fulfill all export obligations.
Startup Example: A service-based startup providing software development to US clients wants to invoice them without adding 18% IGST. By filing an LUT online, they can legally issue export invoices with zero tax, significantly improving their cash flow.
Our GST for exporters solution includes LUT filing.