⛳ Concept of LUT/Bond and Bank Guarantee for Exporters
🌴 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.
⛳ Following Person Eligible to Submit LUT instead of a Bond
🌴 a) Status Holder as specified in the Foreign Policy 2015-2020
- 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
⛳ 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.
⛳ 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.
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005