Concept of LUT/Bond and Bank Guarantee for Exporters under GST

Concept of LUT/Bond and Bank Guarantee for Exporters

1) As Per Rule 96A of CGST Rule 2017, exporter who is exporting Goods without Payment of IGST is required to Furnish a Bond or a Letter of Undertaking in Form GST RFD-11

2) *Following Person Eligible to Submit LUT instead of a Bond*-
a) Status Holder as specified in the Foreign Policy 2015-2020.

OR

b) Exporter who has recd Foreign Inward Remittances amounting to Minimum 10% of export turnover in the preceding Financial Year subject to Minimum Inward Remittance of 1 Crore.

and

he has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees

3) *As Per Circular No-4 Dated 7 July 2017*- Based on the track record of exporter a bank guarantee required to be submitted along with the bond may be waived off by the Jurisdictional GST Commissioner. The Bank Guarantee should normally *not exceed 15% of Bond Amount*.

4) Bond is required to be furnished on a non-Judicial Stamp Paper of the value as applicable in the state in which bond is being furnished.

Regards,
CA Lalit Aggarwal,
9999565491

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