Answer

1. F

   Facts

   A Letter of Undertaking under Rule 96A of the CGST Rules lets a registered exporter supply services without paying IGST. Without an LUT, IGST has to be paid and then claimed as a refund.

2. P

   Provisions and law

   • Rule 96A, CGST Rules 2017 (Letter of Undertaking)Exporter can supply services without paying IGST by furnishing a Letter of Undertaking
   • Sec 16, IGST Act 2017Export of services is a zero-rated supply; it can be made under LUT without paying IGST
3. A

   Analysis

   The LUT is filed online and is valid for the financial year. Example: invoices of $3,000 a month without LUT would need IGST at 18% paid upfront, blocking about ₹45,000 each month until refund. With an LUT, invoices carry a note that supply is under LUT without payment of IGST.

4. C

   Conclusion

   1. 1Log in to the GST portal
   2. 2File the LUT in Form RFD-11 for the year
   3. 3Mention LUT on each export invoice
   4. 4Renew before 1 April each year

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.