Letter of Undertaking (LUT): Definition, Meaning & Guide for Indian Businesses

LUT is a declaration filed by exporters that lets them export without paying IGST upfront, claiming refund of unused input credit instead.

What is Letter of Undertaking (LUT)?

Letter of Undertaking (LUT) is a document filed annually under Rule 96A of CGST Rules by exporters of goods or services. By filing an LUT, exporters can ship goods or render services without paying IGST upfront. They can claim refund of accumulated input tax credit instead. LUT is valid for one financial year and must be renewed by 1 April each year. File LUT online in Form GST RFD-11 on the GST portal.