Export Without Paying IGST – Improve Your Cash Flow Legally

 Letter of Undertaking (LUT) under GST

Export Without Paying IGST – Improve Your Cash Flow Legally

If you are an exporter of goods or services, paying IGST first and then waiting for a refund can block your working capital.

The Letter of Undertaking (LUT) allows you to export without paying IGST, helping you preserve liquidity and operate smoothly.

At our firm, we help businesses file, manage, and monitor LUT compliance professionally — so you can focus on growth while we handle the law.

What is LUT Under GST?

A Letter of Undertaking (LUT) is a declaration filed on the GST portal that allows a registered exporter to:

  • Export goods without payment of IGST
  • Export services without payment of IGST
  • Supply to SEZ units/developers without payment of IGST

It is governed by Section 16 of the IGST Act and Rule 96A of the CGST Rules.

In simple terms:
No upfront tax payment. No refund delays. No working capital blockage.

Why LUT is Critical for Exporters

Without LUT:

  • You must pay IGST on export invoices.
  • Then apply for refund.
  • Refund may take time.
  • Cash flow gets blocked.

With LUT:

  • No IGST payment at the time of export.
  • No refund dependency.
  • Better liquidity.
  • Smoother operations.

For growing exporters, startups, and service providers, LUT is not optional — it is strategic.

Who Can Apply for LUT?

Any registered GST taxpayer making:

  • Export of goods
  • Export of services
  • Supplies to SEZ

is eligible to file LUT (except in serious prosecution cases).

Whether you are:

  • An IT service exporter
  • A consultancy firm serving foreign clients
  • An e-commerce exporter
  • A manufacturer exporting goods

LUT applies to you.

Validity of LUT

  • Valid for one financial year
  • Must be renewed every year
  • Filed online on GST portal
  • No government fee

Many businesses forget renewal — and receive notices.
We ensure your LUT is filed timely and tracked properly.

Common Mistakes That Lead to GST Notices

  • Not renewing LUT for new financial year
  • Incorrect invoice declaration
  • Mismatch in GSTR-1 and export documents
  • Delay in remittance tracking
  • Ignoring export timelines

We regularly handle such cases and prevent future litigation through structured compliance management.

How We Help Exporters

✔ Filing LUT accurately and on time
✔ Annual LUT renewal reminders
✔ Export compliance monitoring
✔ IGST refund advisory (if required)
✔ Handling GST notices related to exports
✔ End-to-end GST advisory for exporters

As a Chartered Accountant practice, we focus on preventive compliance — not just reaction after notices.

Why Professional Handling Matters

Export under LUT looks simple — but mistakes can trigger:

  • Interest liability
  • Demand notices
  • Refund rejection
  • Working capital disruption

With structured monitoring and expert oversight, you can export confidently and scale globally.

Let’s Simplify Your Export GST Compliance

If you are exporting goods or services and want:

  • Smooth GST compliance
  • Zero IGST blockage
  • Professional documentation
  • Litigation-free operations

We are here to assist.

📩 Get in touch today for professional LUT filing and export GST advisory.

CA Khalid Rehman
Practicing Chartered Accountant

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#LUTunderGST

#LUTforexportofservices

#LUTforexportofgoods

#BenefitsofLUTforexporters

#ProfessionalLUTfilingservicesinIndia

#GSTconsultantforexporters

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