If you have come across "LUT" (Letter of Undertaking) on a form, invoice or bank statement and wondered what it means, this short guide explains it clearly.
An LUT allows exporters to supply goods or services without paying IGST upfront. It is filed on the GST portal and is valid for a financial year.
What is LUT?
An LUT allows exporters to supply goods or services without paying IGST upfront. It is filed on the GST portal and is valid for a financial year.
| Full form | Letter of Undertaking |
|---|---|
| Commonly seen in | lut, export, gst |
Where it is used
- Zero-rated exports without tax payment
- Supplies to SEZ units
Related terms
You may also come across: Export, IGST. These are closely connected to LUT in everyday tax, compliance and banking contexts.
Why LUT matters
Getting LUT right matters because it appears on official documents, filings and transactions where errors cause delays, rejections or penalties. Quoting the correct LUT — and understanding what it represents — keeps your registrations, returns and payments accurate and traceable.
If you are unsure whether LUT applies to your situation, it is worth confirming with the relevant portal or a qualified professional before you file, since the details differ by taxpayer type and activity.
Frequently asked questions
What is the full form of LUT?
The full form of LUT is Letter of Undertaking.
Why is LUT important?
An LUT allows exporters to supply goods or services without paying IGST upfront. It is filed on the GST portal and is valid for a financial year. Understanding it helps you complete filings and transactions correctly and avoid errors.