IEC Code for Export, GST and LUT: Paperwork for Indian Exporters

The enquiry has arrived. A distributor overseas likes your samples, agrees your MOQ and asks for a proforma invoice. At this point many first-time exporters realise they do not know what comes next. Which registration do we need? How is tax handled when goods leave the country? What does the freight forwarder mean when they ask for a shipping bill number?

These questions are normal. Indian manufacturers are used to domestic invoices and transport receipts, and export adds a layer of registrations and documents that feel unfamiliar until you have done them once. The good news is that the core concepts are stable and well known, and you can learn them before the first order rather than during it.

This guide gives a plain-English orientation to the IEC code for export, GST and the Letter of Undertaking, and to the main export documents Indian exporters meet. It is not tax or legal advice. Procedures, portals, thresholds and forms change, so use this as a map and confirm the details with professionals.

Why paperwork matters before the first order

Paperwork is not an afterthought. Customs will not clear goods without correct documents, banks may not process payment if the invoice and shipping documents disagree, and a buyer may be unable to import if a certificate is missing. Fixing errors after goods are at the port is slow and costly.

Preparing in advance also helps you win orders. A buyer who asks, "Are you registered for export, and can you provide a certificate of origin?" and receives a confident reply is more likely to move forward. Having your registrations ready is part of looking like a reliable supplier.

The Importer-Exporter Code

The Importer-Exporter Code, usually shortened to IEC, is a business identification number that Indian customs and the banking system expect an exporter to hold. In general, a person or company that exports goods from India needs one, with limited exceptions for particular situations. Banks and customs refer to it when processing shipping bills and receiving foreign payments.

At a high level, the process is:

Make sure your business is properly constituted and has its basic registrations and a business bank account.
Apply for the code through the government's official trade portal.
Keep the certificate, and check that the details match your other records exactly.
Update the details if your address, name or other information changes.

Spelling, addresses and bank details must match across your IEC, GST registration and bank records. Mismatches are a frequent cause of delays. Use only the official government channel for applications, and be careful of third parties offering fast services at a premium.

GST on exports

Goods and Services Tax applies across the Indian domestic system. For exports, the general principle is that exports are treated as zero-rated supplies, which means the exporter is not meant to bear the tax cost on goods that leave the country. There are two broad ways this is usually handled:

export under a Letter of Undertaking, without paying integrated tax, and claim refund of unutilised input tax credit
export on payment of integrated tax and later claim a refund of the tax paid

Which route suits you depends on your cash flow, your input credits and your accountant's advice. Many manufacturers prefer the first route because it avoids locking up working capital, but eligibility and conditions apply.

Your invoice must be correctly prepared for an export transaction, with the details your tax adviser tells you to include. Do not guess at the format.

The Letter of Undertaking

A Letter of Undertaking, or LUT, is a document an exporter furnishes to the tax authority so that exports can be made without paying integrated tax at the time of supply. In essence, you promise to meet the conditions attached to zero-rated exports, such as bringing in the foreign payment within the allowed period.

Key points to understand:

it is filed online through the official GST portal
it is typically valid for a financial year and needs to be renewed
you should know which invoices and shipments it covers
conditions about realisation of export proceeds matter

Because eligibility rules, validity periods and procedures are updated by the authorities, ask your tax adviser to confirm what applies to your business in the current year.

The export documents you will meet

Different shipments need different sets of documents, but the following appear repeatedly.

Document	Who normally prepares it	Purpose
Proforma invoice	Exporter	Quotation for buyer approval and for payment arrangements
Commercial invoice	Exporter	Official value and description of goods
Packing list	Exporter	Cartons, weights, dimensions and marks
Shipping bill	Exporter or customs broker	Customs declaration in India
Bill of lading or airway bill	Carrier or forwarder	Transport contract and receipt
Certificate of origin	Authorised body or exporter, depending on the case	Evidence of where goods were made
Insurance certificate	Insurer or forwarder	Cover for goods in transit
Product-specific certificates	Testing or approval bodies	Quality, health or safety evidence where required

The goods description and classification code should match across the invoice, packing list and shipping bill. A customs broker can check this before filing.

Trade terms and who does what

Your quotation should state a trade term, such as ex-works, free on board or cost, insurance and freight. These international terms say who arranges and pays for transport and insurance and where risk passes from seller to buyer. The terms you choose affect which documents you are responsible for, so choose consciously and write it on every quotation.

If you are new to exporting, free on board is a common starting point, since your responsibility ends once the goods are loaded at the Indian port. Your forwarder can explain how this works for your product and destination.

Getting paid and the bank's role

Foreign payments come through the banking system, and your bank will ask for supporting documents, such as the shipping bill and invoice, to match the payment with the shipment. Keep your records organised. Agree payment terms in writing before production. Discuss with your bank which methods suit your first orders and what charges apply.

On Comilmart, Trade Assurance provides a general layer of protection for eligible orders; read the current terms rather than assuming what it covers.

Using a marketplace without losing control of compliance

An online marketplace brings enquiries, but compliance remains your responsibility. When you apply as a manufacturer on Comilmart, the verification review asks for your company details, registration number, tax number, business licence and certificates. Having your IEC, GST and licence documents organised makes the application smoother, and approved companies receive a Verified badge. Comilmart's landed-cost calculator and shipping rate tools can help you see what the buyer will pay, but the legal and tax treatment of each shipment is for you and your advisers.

Always confirm current requirements with your customs broker, your tax adviser and the relevant authority before you ship. Rules in the destination country can differ from those in India.

Frequently asked questions

Do I need an IEC for every shipment?

You normally hold one code for your business and quote it on export documents. Confirm the exact rules with your broker.

Is a LUT compulsory?

It is one route for exporting without paying integrated tax at the time of supply. The alternative route involves paying tax and claiming a refund. Ask your tax adviser which suits you.

Can I use the same documents for every buyer?

Templates help, but each shipment needs its own accurate details, and some buyers or countries add requirements.

Do samples need documents too?

Yes, samples crossing a border are goods and usually need an invoice and declaration. Ask your courier or broker.

Next step

Once your registrations are in order, the next move is to put your products in front of buyers. Apply as a manufacturer with your documents ready, and visit the Learning Center for more export guidance. A clear understanding of the IEC code for export, GST and LUT makes your first quotation more confident and your first shipment smoother.