Letter of Undertaking for exports permits tax free shipments if LUT or bond furnished, with bank guarantees normally limited. Requirement to furnish a Bond or Letter of Undertaking (LUT) under Rule 96A and Form GST RFD 11 governs exports without payment of integrated tax; notification identifies exporters eligible for LUT while others must furnish a bond on non judicial stamp paper. Running bonds may be used to cover estimated export tax liabilities, with fresh bonds if amounts are insufficient. Jurisdictional Commissioners may set bank guarantee amounts based on exporter track record and may permit bonds without bank guarantee; bank guarantees should normally not exceed fifteen percent. LUTs are valid for twelve months and non compliance may require bond furnishing.
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 for exports permits tax free shipments if LUT or bond furnished, with bank guarantees normally limited.
Requirement to furnish a Bond or Letter of Undertaking (LUT) under Rule 96A and Form GST RFD 11 governs exports without payment of integrated tax; notification identifies exporters eligible for LUT while others must furnish a bond on non judicial stamp paper. Running bonds may be used to cover estimated export tax liabilities, with fresh bonds if amounts are insufficient. Jurisdictional Commissioners may set bank guarantee amounts based on exporter track record and may permit bonds without bank guarantee; bank guarantees should normally not exceed fifteen percent. LUTs are valid for twelve months and non compliance may require bond furnishing.
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