Zero-Rated Supplies, Maximum Savings — Expert GST Guidance for Exporters and SEZ Units
Under GST, exports of goods and services are "zero-rated supplies" — meaning no GST is charged on exports, and the exporter can either claim a refund of IGST paid or claim a refund of accumulated ITC. Similarly, supplies to SEZ units and SEZ developers are treated as zero-rated, making proper GST treatment of SEZ transactions a compliance priority. However, the mechanism differs based on whether you export under LUT (Letter of Undertaking) or pay IGST first and claim refund later — and each route has distinct documentation, filing, and compliance requirements.
Mistakes in export GST — wrong invoice format, incorrect place of supply, failure to file LUT, missing correlation between shipping bill and GSTR-1 — can result in IGST refund rejection, ITC reversal demands, and customs department queries. For SEZ transactions, the documentation requirements around SEZ developer certification, B2B invoice format, and ITC refund claims are particularly strict.
VITTAX provides comprehensive advisory for exporters and SEZ-linked businesses — including LUT filing, export invoice setup, IGST refund or ITC refund processing, shipping bill correlation, and ongoing compliance management.
Who Needs This?
Our Export GST Services
Pricing
LUT Filing
₹999/year
Annual LUT for exporters of services
Ideal for: Service exporters needing annual LUT renewal before exports
Export Refund Processing
₹2,999 per refund claim
For IGST or ITC refund claims
Ideal for: Exporters of goods or services claiming GST refunds
Ongoing Export GST Management
₹1,999/month
Monthly compliance for active exporters
Ideal for: Regular exporters with monthly foreign invoicing and quarterly refund claims
Frequently Asked Questions
What is LUT and why must exporters file it?
A Letter of Undertaking (LUT) is a declaration filed by eligible exporters to supply goods or services without payment of IGST — shifting to the ITC refund route instead. Without LUT, exporters must pay IGST first and then claim a refund — blocking working capital. LUT is filed annually on the GST portal before the first export of each financial year.
Can I export both with IGST payment and under LUT?
Not simultaneously for the same transaction. However, you can choose — some businesses pay IGST and claim the IGST refund (faster if shipping bills are filed correctly), while others prefer the ITC refund route under LUT (better for businesses with large accumulated ITC). VITTAX helps you select the optimal route based on your situation.
⚡ Export Routes
Talk to an Export GST Expert → We handle LUT, refunds, GSTR-1 export tables, and FIRC correlation