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Business wiki · GST and invoicing

Letter of undertaking

An undertaking used for eligible zero-rated supplies without payment of integrated tax, subject to the applicable conditions.

Search terms: LUT GST exports

A business example

A software exporter has assessed that a particular contract meets the export conditions and plans to use the LUT route.

Follow the exampleFictional business scenario

  1. Check the supply

    Confirm that the transaction qualifies for the chosen export treatment.

  2. Check the undertaking

    Ensure the relevant undertaking and conditions are addressed.

  3. Keep the trail

    Connect the contract, invoice, service evidence and receipt records.

What this shows

The overseas address on a customer invoice is only one fact. The undertaking supports a route whose conditions still need to be met.

What it is often confused with

A foreign customer does not by itself make every supply an eligible export of services.

What to look at in your business

Keep the undertaking with evidence supporting the export conditions.

Context and further reading

CBIC: sectoral GST questions. This reference supports the terminology; use the linked guide for applicability and operative requirements.

LUT requirements for exporters →

Kosha.Services · Updated 2 October 2026

Related terms

Reverse charge

A GST mechanism under which the recipient pays the tax for specified supplies instead of the supplier paying it in the usual way.

GSTR-1

The GST statement used to report outward supply details for the relevant period.

GSTR-3B

The summary GST return used to report relevant liabilities and input tax credit and discharge tax for a period.