What is LUT in GST? The full form of LUT is Letter of Undertaking. It is a document that exporters can file to export goods or services without having to pay taxes. Under the new GST regime, all exports are subject to IGST, which can later be reclaimed via a refund against the tax paid.

What is the purpose of Lut?

LUTs / Bonds can be used for: Zero-rated supply to SEZ without payment of IGST. Export of goods to a country outside India without the payment of IGST. It is providing services to a client in a country outside India without paying IGST.

When should a LUT be filed?

You need to submit a new LUT for each financial year. If the goods for export are not exported within three months of Date of Invoice issue, then the Exporter is liable to pay GST along with 18% interest within 15 days according to Section 50 (1).