Submission of Bond/Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under IGST Act.

Bond or Letter of Undertaking allows exporters to ship zero rated supplies without paying IGST, subject to prescribed safeguards.

A Bond or Letter of Undertaking in FORM GST RFD-11 allows registered exporters to make zero rated supplies without payment of integrated tax and claim refund of unutilised input tax credit; the instrument must be furnished prior to export and binds the exporter to pay tax with interest if goods are not exported or payment in convertible foreign exchange is not received within the prescribed periods, subject to any extension by the Commissioner. Central Tax officers are authorised to accept Bond/LUT until taxpayers are administratively assigned.