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As per the provisions of the GST Act, 2017, a business entity or seller is mandated to issue Letter of Undertaking (LUT) prior to beginning any Export Business.
GST Letter of Undertaking or Bond legally enables a business personnel or seller to operate an Export business without paying the imposed Tax.
As per the Act, a GST LUT can be filed for an entire Financial Year. It simplifies the taxation process.
GST LUT filing not only exempt the auxiliary taxation, it gives a Export Business Entity further composure in terms of Customs Duty.
Once an Entity files GST LUT to the taxation department, GST improves throughout the financial year.
Since April, 2018, GST LUT filing has been modified into an entire digital system.