Glossary
LUT
Letter of Undertaking
A Letter of Undertaking is a document filed by an exporter to export goods or services without paying Integrated Goods and Services Tax (IGST). It acts as a commitment that export rules will be followed.
Where it appears in practice
Essential for exporters wanting to avoid cash blockage. Valid for one financial year.
A worked example
An IT firm exports software to the US. By filing an LUT, they export the services with zero IGST payment upfront instead of paying and claiming a refund.
Related terms
- IGST
- Refund
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
LUT Filing