Letter of Undertaking In GST

 What is a Letter of Undertaking in GST?

A Letter of Undertaking (LUT) is a document used in the context of the Goods and Services Tax (GST) in India. Under the GST regime, a registered person who exports goods or services can export them without paying any integrated tax (IGST) by furnishing a LUT to the tax authorities.

The LUT is a declaration made by the exporter to the effect that they will fulfill all the requirements under the GST Act and the rules made thereunder. By furnishing a LUT, the exporter assures the tax authorities that they will export the goods or services in accordance with the applicable laws and will not make any supplies that are not in conformity with the GST Act.


To be eligible to furnish a LUT, an exporter must fulfill certain conditions, such as having an income tax PAN, having filed GST returns for the previous period, and not having been prosecuted for any offense under the GST Act. The LUT must be furnished in the prescribed form and manner and must be valid for the period for which it is furnished.

What are the requirements to apply?

As per the CGST Rules of 2017, registered individuals can export goods without paying integrated tax by providing a bond or LUT in the GST RFD 11 format. To be eligible for a LUT, they must fulfill the following criteria:

  • Have the intention to export goods or services from India, or supply goods/services to a Special Economic Zone developer or unit
  • Possess a copy of their GST registration
  • Want to supply goods without paying IGST.

Eligibility Criteria

·       If the tax imposed exceeds Rs.250 lakhs, the individual must not have been prosecuted under the Central Goods and Services Tax Act (CGST), the Integrated Goods and Services Tax Act (IGST), or any other existing laws.

·       It must be provided in duplicate for each financial year. LUT is presented as an annexure to form GST RFD-11 and can be issued by the partner, MD, Company Secretary, or by a person duly authorized by the company or the proprietor. 

     Read more to know about Letter of Undertaking In GST

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