Export LUT preparation and export-condition review
GST
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Year-end
A Letter of Undertaking allows an eligible registered exporter to use the route for zero-rated supplies without paying integrated tax upfront. TheTaxCo checks the proposed supplies, prepares and files the year’s LUT, and monitors the export and payment conditions afterwards.
An overseas customer or foreign-currency receipt does not establish an export of services by itself. We examine the contracting parties, place of supply and receipt arrangement before relying on the LUT route. Supplies to an SEZ also need the authorised-operations test. IGST Act, sections 2 and 16.
Choosing and preparing the undertaking
The LUT is furnished in GST RFD-11 for the financial year. Eligibility includes the prescribed prosecution restriction; where the LUT route is unavailable, a bond may need consideration. A prior year’s acknowledgement does not cover the new financial year. CBIC Circular 8/8/2017-GST.
We check the GST registration, authorised signatory, previous LUT and expected export mix. The preparation pack contains the proposed declarations, supporting particulars and signatory instructions. We file after your authorised signatory approves the declarations and completes the required authentication, then keep the acknowledgement with the year’s export records.
We handle the annual application, review exports and receipts, and follow up open exceptions. Where a refund is due, our team also prepares and files the claim using the period-specific computation and evidence. If your accountant maintains the export register, we agree the handover and review dates.
What has to happen after the LUT
For goods, rule 96A links the undertaking to export within three months of the invoice, subject to a further period allowed by the Commissioner. For services, it links receipt to one year or the FEMA/RBI-permitted period including extension, whichever is later, or a further period allowed by the Commissioner. The rule requires payment of tax and interest within 15 days after the applicable window expires if its condition is not met. Receipt must be in convertible foreign exchange or Indian rupees where RBI permits. CGST Rules, rule 96A.
The monitoring schedule therefore records different evidence for goods and services. Goods need invoice-to-export matching; services need invoice-to-receipt matching, including intermediary payment arrangements and deductions. An overdue item is flagged with its date, evidence gap and next action, including whether an extension needs consideration.
Records and practical outputs
Provide the registration particulars, current signatory authority, previous LUT, sample contract and invoice, and a description of the export and receipt arrangements. For an existing exporter, add an invoice-level list of unexported goods or outstanding service receipts.
You receive an eligibility note, the filed LUT record and acknowledgement, a conditions checklist and an open-invoice schedule with periodic follow-up review. We agree the preparation date after checking these inputs and any earlier breach; government or bank action can affect the time needed to resolve exceptions.
Questions exporters ask
Can we use the payment-and-refund route instead? That route is subject to the current statutory and notified conditions. We check availability for your goods or services before comparing its cash effect with the LUT route. Paying integrated tax is not a universal cure for a missing or invalid LUT. IGST Act, section 16.
Our marketplace settles several invoices in one amount. Keep the settlement statement, charges and invoice references alongside the bank receipt. We need to reconcile the gross export invoices with the net remittance and explain the deductions.
We exported before arranging this year’s LUT. Share the invoice dates, export or receipt evidence and previous undertaking. We assess the late-furnishing and tax position from those facts; do not assume last year’s document extends automatically.
Does an LUT mean our supplies are exempt? Zero rating preserves the statutory credit framework for eligible supplies. It should not be treated as an ordinary exemption when preparing credit and refund workings.
The connected services are GST refund claims, export reporting in GSTR-1 and IEC and business registrations.
Email TheTaxCo, message us on WhatsApp or book a call. Share the financial year, type of export, planned first invoice date and whether any previous export invoices remain unpaid or unexported.