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What is LUT in exports?

Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login

LUT (Letter of Undertaking) is a declaration filed by an Indian exporter with GSTN to export goods and services without paying IGST (Integrated GST). Under GST, exports are zero-rated — exporters either pay IGST and claim refund, or file LUT and export without paying IGST. LUT is the preferred method as it avoids cash flow blockage. LUT must be renewed at the start of each financial year.

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