Why Import Export Code Is Important for LUT Filing

Exporters who wish to supply goods or services without paying IGST under GST regulations must file a Letter of Undertaking (LUT). While LUT is filed through the GST portal, export transactions are also linked with customs, banking, and DGFT systems. The Import Export Code plays an important supporting role in maintaining consistency across these regulatory frameworks.

When exporters claim zero-rated supply benefits under LUT, their export invoices, shipping bills, and foreign remittance records must align correctly. The Import Export Code acts as the central identification number that connects export transactions across departments. Without accurate IEC details, mismatches may arise during verification of export turnover or foreign exchange realisation.

How Import Export Code Supports LUT-Based Exports

• Links export invoices, shipping bills, and transaction details with verified exporter identity records across GST and DGFT systems

• Ensures consistency between GST returns, LUT declarations, and official DGFT registration information

• Supports verification of export proceeds through authorised banking channels for proper foreign exchange compliance

• Reduces discrepancies during GST audits, refund validations, or export turnover reconciliation checks

• Strengthens documentation accuracy, compliance transparency, and regulatory alignment for zero-rated export supplies

Authorities rely on cross-verification between GST returns, shipping documents, and bank realisation certificates. If the Import Export Code information is inactive or outdated, it may trigger additional compliance queries. Maintaining updated details ensures smoother LUT-based export operations.By keeping a valid Import Export Code, exporters strengthen regulatory alignment, reduce audit risks, and ensure seamless zero-rated export compliance under GST.

Note: If you also want to explore how food businesses are monitored and regulated in India, this guide on FSSAI registration explains how digital systems are shaping food safety and compliance.