LUT (Letter of Undertaking)
An LUT (Letter of Undertaking) lets GST-registered exporters — including freelancers billing international clients — supply services without paying IGST upfront, instead of claiming a refund later.
Exports of services (including a freelancer invoicing a client outside India) are treated as "zero-rated supply" under GST — meaning no GST should ultimately be charged. Without an LUT, you’d need to pay IGST on the export and then separately claim a refund.
Filing an LUT (typically once a year, through the GST portal) lets you skip that pay-then-refund cycle entirely — you can invoice international clients without charging or paying IGST on that invoice from the outset.
If you regularly invoice clients outside India — a common situation for Indian freelance developers, designers, and consultants — filing an LUT is usually worth doing rather than leaving refund claims to pile up.
Written by the InvoicePilot Team.