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While exporting goods or services, the exporter has an option to either pay IGST on exports and then claim refund of GST paid amount, or furnish Letter of Undertaking (LUT) and sell without payment of GST.
LUT is prescribed to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment.
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