Letter of Undertaking eligibility linked to foreign inward remittance criteria; LUT can replace bond for zero-rated exports. Clarification extends the Letter of Undertaking (LUT) facility to any registered person meeting foreign inward remittance thresholds (minimum ten percent of export turnover and not less than one crore rupees, higher amount applicable), with status holders exempted from these conditions. LUTs must be on letterhead and processed within three working days; CT-1 is irrelevant under GST and supplies to EOUs are taxable with EOUs eligible for zero-rating on exports. RBI-compliant rupee receipts for specified jurisdictions are permissible; bank guarantees should normally not exceed fifteen percent and may be waived; self-declaration and post-facto verification are acceptable.
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.
Letter of Undertaking eligibility linked to foreign inward remittance criteria; LUT can replace bond for zero-rated exports.
Clarification extends the Letter of Undertaking (LUT) facility to any registered person meeting foreign inward remittance thresholds (minimum ten percent of export turnover and not less than one crore rupees, higher amount applicable), with status holders exempted from these conditions. LUTs must be on letterhead and processed within three working days; CT-1 is irrelevant under GST and supplies to EOUs are taxable with EOUs eligible for zero-rating on exports. RBI-compliant rupee receipts for specified jurisdictions are permissible; bank guarantees should normally not exceed fifteen percent and may be waived; self-declaration and post-facto verification are acceptable.
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