A Letter of Undertaking lets eligible exporters ship zero-rated without blocking cash in IGST. Here's how it works.
Exports are zero-rated under GST. You can either pay IGST and claim a refund, or file a Letter of Undertaking (LUT) and export without paying IGST at all — much kinder to cash flow.
LUT avoids the refund cycle entirely; the pay-and-refund route blocks cash until the refund lands. Most regular exporters prefer the LUT.
Our in-house CA & CS team set up your virtual office, VPOB and GST end to end — from ₹15,290/yr.
💬 Talk to our team View plans →A Letter of Undertaking that lets eligible exporters supply zero-rated without paying IGST, filed yearly via Form RFD-11.
Most exporters who haven't been prosecuted for serious tax offences. It's filed per financial year.
For cash flow, usually yes — it avoids paying IGST and waiting for a refund.
Leave your details and our in-house CA & CS team will call you back — usually within a few business hours. No spam, no obligation.