Bond or Letter of Undertaking for exports without integrated tax clarifies eligibility and security requirements for exporters. Exporters making zero-rated supplies without payment of Integrated Tax must furnish a bond or Letter of Undertaking in FORM GST RFD-11; Notification No.16/2017 identifies who may submit LUTs and others must submit bonds on non-judicial stamp paper. Where bonds are required, exporters shall furnish a running bond covering estimated tax liability and top up or submit a fresh bond if liabilities exceed the bond. A bank guarantee may be required with the bond, but the jurisdictional Commissioner may reduce or waive it based on exporter track record; such guarantees should normally not exceed fifteen percent of the bond amount.
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Provisions expressly mentioned in the judgment/order text.
Bond or Letter of Undertaking for exports without integrated tax clarifies eligibility and security requirements for exporters.
Exporters making zero-rated supplies without payment of Integrated Tax must furnish a bond or Letter of Undertaking in FORM GST RFD-11; Notification No.16/2017 identifies who may submit LUTs and others must submit bonds on non-judicial stamp paper. Where bonds are required, exporters shall furnish a running bond covering estimated tax liability and top up or submit a fresh bond if liabilities exceed the bond. A bank guarantee may be required with the bond, but the jurisdictional Commissioner may reduce or waive it based on exporter track record; such guarantees should normally not exceed fifteen percent of the bond amount.
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