The Letter of Undertaking, also known as the LUT Bond, is a document submitted by an exporter to be exempt from paying IGST on exports. To increase exports, the government has given exporters the option to file a LUT and conduct exports without paying IGST. Most small merchants struggle with a severe lack of liquidity, thus to address this issue, the government provided the option of submitting a LUT Bond, which allows traders to undertake exports while paying 0% IGST as long as they are crystal clear about their goal.

LUTs may be used by any registered taxpayer who is exporting goods or services. However, the act prohibits anyone who has been charged with tax evasion for an amount of Rs. 2.5 crores or more from providing LUTs. Also, such LUTs have a one-year validity duration (till the end of the financial year). However, to receive a certificate for the LUT Bond Registration, an exporter who submits LUTs must submit a new LUT for each fiscal year. If the LUT's stated requirements are not met promptly, the exporter's licenses are terminated and bonds are required.

Legal Raasta will assist you in obtaining a LUT Bond Registration Certificate and in easing the hassle of creating a Letter of Undertaking (LUT). Our knowledgeable team will give you the best guidance and complete all of your paperwork on your company's behalf. So, don't waste time and apply for a LUT Bond with us right away.