What is LUT in GST? Letter of Undertaking Meaning & Full Form
In the dynamic world of international trade, Indian exporters constantly seek mechanisms that can streamline operations, reduce costs, and improve cash flow. One such pivotal instrument under the Goods and Services Tax (GST) regime is the Letter of Undertaking, universally known by its acronym, LUT. Understanding LUT in GST, its meaning, and its complete form is crucial if you are or want to be an exporter. This thorough guide by EximPe will help you understand the Letter of Undertaking , its purpose, its many advantages, the eligibility requirements, and the 2025 online application process. What is LUT? Letter of Undertaking is referred to as LUT. An LUT is a formal document that, under the GST framework, permits registered exporters to export goods or services without having to pay the Integrated Goods and Services Tax (IGST) up front. Exporters used to be required to pay IGST on their exports and then request a refund. Exporters can ship goods or render services without havin...