Export bond and LUT rules govern zero-rated supplies, permitting running bonds, conditional bank guarantees, and year-long LUT validity. Exports without payment of integrated tax require a Letter of Undertaking (LUT) or a bond in FORM GST RFD-11; exporters not eligible for LUT must furnish a bond on non-judicial stamp paper. Running bonds are permitted to cover estimated tax liability for pending exports and must be topped up if insufficient. Jurisdictional Commissioners may require a bank guarantee as security, normally capped at fifteen percent of the bond amount, but may waive it for exporters with satisfactory track records. LUTs are valid for twelve months, and acceptance of Bond/LUT is by the jurisdictional Deputy/Assistant Commissioner or temporarily by Central/State authorities as directed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Export bond and LUT rules govern zero-rated supplies, permitting running bonds, conditional bank guarantees, and year-long LUT validity.
Exports without payment of integrated tax require a Letter of Undertaking (LUT) or a bond in FORM GST RFD-11; exporters not eligible for LUT must furnish a bond on non-judicial stamp paper. Running bonds are permitted to cover estimated tax liability for pending exports and must be topped up if insufficient. Jurisdictional Commissioners may require a bank guarantee as security, normally capped at fifteen percent of the bond amount, but may waive it for exporters with satisfactory track records. LUTs are valid for twelve months, and acceptance of Bond/LUT is by the jurisdictional Deputy/Assistant Commissioner or temporarily by Central/State authorities as directed.
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