A Letter of Undertaking (LUT) is a document filed by exporters in India to export goods or services without paying Integrated GST (IGST), under GST rules. It allows businesses to carry out exports tax-free, provided they commit to fulfilling certain conditions under the GST Act. Filing an LUT is crucial for exporters who want to avoid the cash flow burden of tax payment on international trade. LUTs are typically valid for a financial year and can be filed online through the GST portal. Exporters supplying services under LUT also need to submit proof of foreign currency realization, usually through an eBRC. Using a Letter of Undertaking is not just a compliance necessity—it also streamlines operations and enhances financial efficiency.
DGFT Introduces ‘Mode of Export of Services’ Field In eBRC Format For Services Exports W.E.F May 01, 2025 The Directorate General of Foreign Trade (DGFT) has introduced the ‘Mode of Export of Services’ field in Electronic Bank Realisation Certificates (eBRCs)…
