Frequently Asked Questions
The full form of LUT is Letter of Undertaking. It is a document that exporters can file to export goods or services without having to pay taxes.Intend to supply goods or services to India or overseas or to SEZs. Are registered under GST. Wish to supply goods without the payment of an integrated tax.
There is no restriction on invoicing of export contracts in Indian Rupee.Export contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit.
The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. A duty drawback was provided under the previous laws for the tax paid on inputs for the export of exempted goods.
The exporter charges IGST on the invoice for export at the applicable rate (rates specified for different goods and services). On payment of IGST, the refund can be claimed for the following two elements: Input tax credits on goods and services which remained unutilised; IGST paid on export of goods or services.
An export invoice is a GST tax invoice that you create for clients that are outside of India and request an invoice with a different currency on it. It has the same format and requirements as a normal GST tax invoice.