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What is LUT (Letter of Undertaking) ?

If you're a business or exporter offering goods or services to clients outside India and you don’t want to pay IGST (Integrated Goods and Services Tax) every time you send an invoice abroad, then applying for an LUT (Letter of Undertaking) under GST is a must. LUT helps exporters like you carry out your exports without the burden of paying taxes upfront and then claiming refunds later. It’s a smart and efficient way to keep your working capital free and your business compliant.

In simple terms, LUT is a document that a registered GST taxpayer submits to the government, promising that they will fulfill all GST conditions while making exports without paying IGST. It is especially helpful for exporters of goods and services, freelancers with foreign clients, software companies, BPOs, and even consultants working internationally. Once filed, it remains valid for one financial year and needs to be renewed annually.

Many small businesses and startups aren’t aware of this benefit and end up paying IGST unnecessarily, which creates a cash flow issue. That’s where CallmyCA comes in. We make the process of filing LUT super easy, paperless, and 100% online. Whether you're new to GST or just confused with the process, our expert team will handle everything and make sure your LUT gets approved quickly without errors or rejections.

Having a valid LUT is not just helpful — it’s essential if you want to avoid unnecessary tax payments and maintain proper export compliance.

4 EASY STEPS OF

LUT (Letter of Undertaking)

Share Basic Details and Documents
01

Share Basic Details and Documents

We Prepare & Submit Your Application
02

We Prepare & Submit Your Application

Digital Signing and Acknowledgement
03

Digital Signing and Acknowledgement

Get LUT Copy for Your Records
04

Get LUT Copy for Your Records

DOCUMENTS CHECKLIST

Documents Required for LUT (Letter of Undertaking)

LUT (Letter of Undertaking)

File Your GST LUT Online to Export Without IGST – Mandatory for Exporters & Freelancers

Zero IGST on Exports

Exporters can sell goods or services without paying Integrated GST, which saves huge amounts and keeps cash flow intact.

Faster Cash Flow Management

You don’t need to wait for GST refunds, which usually take time and add financial pressure.

Fully Online & Hassle-Free Filing

Our experts handle the entire process online — no physical documents or visits to GST offices.

Expert Guidance

We ensure your LUT application is error-free, reducing chances of rejection or delay.

Suitable for Freelancers and IT Professionals

Even if you’re an individual providing services abroad, you can benefit from LUT and skip IGST.

Quick Turnaround Time

We ensure that your LUT is filed and approved within 24–48 hours in most cases.

Yearly Reminders & Renewals

Since LUT is valid for one financial year, we send you reminders for timely renewal every year.

Support for First-Time Filers

We guide businesses who are filing LUT for the first time with complete step-by-step help.

Avoid Legal Complications

Exporting without LUT and without paying IGST is non-compliant and may lead to penalties — LUT keeps your exports 100% legal.

FAQ

Frequently Asked Questions

LUT (Letter of Undertaking) is a declaration filed by GST-registered exporters stating they will comply with GST rules while exporting without paying IGST. It’s essential because it helps businesses avoid paying IGST upfront and saves them from the time-consuming refund process. This benefits exporters by improving cash flow and avoiding tax blockages. Without LUT, you’d have to pay IGST and later apply for a refund, which can take weeks or even months. So, LUT is a simple legal way to make exports tax-free and cash-flow friendly.

Any GST-registered person or business that exports goods or services outside India — whether directly or through SEZs — can apply for an LUT. This includes IT companies, service exporters, consultants, freelancers, or even startups dealing with international clients. You don’t need to be a large exporter — even small businesses or individuals with international payments can and should apply for LUT.

An LUT is valid for one financial year (from 1st April to 31st March). You need to apply for a fresh LUT every year before your old one expires. Don’t worry — CallmyCA sends you reminders and handles renewal every year.

Exporting without LUT and without paying IGST is a violation of GST law. It can lead to notices from the GST department, penalties, or cancellation of GST registration. To avoid such legal issues, it’s always better to file your LUT in advance.

In most cases, the LUT gets approved on the same day or within 1–2 working days. CallmyCA speeds up the process by ensuring your documents are in order and everything is filed correctly the first time.

No. The entire LUT filing process is done online through the GST portal. If you apply through CallmyCA, you don’t even have to log in yourself — we do everything and share the approval with you digitally.

CallmyCA offers affordable packages for LUT filing. The price includes document review, application preparation, filing, and post-filing support. Contact us for the best price suited to your business size.

Yes, if you are providing services to international clients and issuing export invoices, LUT is mandatory if you want to avoid paying IGST. It applies not just to companies but also to individual freelancers and professionals.

With LUT, you export without paying any tax. With IGST refund, you pay the tax first and then claim it back. LUT saves you from blocking money and the long wait for refunds.

Absolutely. We not only help with LUT filing but also provide GST registration, return filing, consultation, and Startup India Registration. We are your one-stop solution for all tax and legal needs.