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Letter of undertaking (LUT) is self declaration form filed by user declaring that all requirements under GST are fulfilled. Letter of Undertaking is filed online using the form GST RFD-11. It is mandatory to provide LUT to export goods or services or both without paying IGST. In case, exporters who do not meet the eligibility criteria for filing LUT are required to submit a Bond in place of LUT for exports without the payment of IGST. If the exporter fails to provide the LUT or Bond, then he has to pay IGST.
Benefits of Filing LUT: