Issues related to Bond/Letter of Undertaking for exports without payment of integrated tax – Reg.

Bond and Letter of Undertaking for export without integrated tax: running bonds permitted, bank guarantee capped, LUT validity limited.

Clarifies that exporters eligible under the notification may use a Letter of Undertaking (LUT), while others must furnish a bond in FORM GST RFD-11 on state stamp paper. Exporters may furnish a running bond to cover estimated export tax liability and must ensure outstanding liabilities remain within the bond; fresh bond required if insufficient. The jurisdictional Commissioner may demand a bank guarantee based on exporter track record, with bank guarantees normally not to exceed fifteen percent of the bond amount. Bonds/LUTs are accepted by the Deputy/Assistant Commissioner having jurisdiction over the exporter's principal place of business.