LUT (Letter of Undertaking)

What is LUT?

LUT stands for Letter of Undertaking. It is a declaration filed by GST-registered exporters (including freelancers) with the GST department, allowing them to export goods or services without paying Integrated GST (IGST).

Without an LUT, you would need to pay IGST on your export invoices and then claim a refund — a process that can take months.

Who Needs to File LUT?

If you are:

• GST registered (turnover above ₹20 lakhs / ₹10 lakhs for some states)
• Exporting services to clients outside India
• Want to avoid paying IGST upfront

Then you should file an LUT.

How to File LUT

1. Log in to the GST portal (gst.gov.in)
2. Navigate to Services → User Services → Furnish Letter of Undertaking
3. Fill in the details for the financial year
4. Submit — no physical documents required

LUT must be filed before the first export invoice of each financial year (April to March). It is valid for one financial year and must be renewed annually.

LUT and Zero-Rated Supply

Export of services from India is classified as a zero-rated supply under GST. With an LUT in place, you can issue invoices to international clients without charging GST, and you don't need to pay IGST and wait for a refund.

Related Terms

• Zero-Rated Supply — GST classification for exports
• FIRA — remittance proof needed for GST compliance
• FEMA — foreign exchange regulations