EXPORT PROCEEDURE UNDER GST

[BIJU CHACKO]

OUR LAST YEAR EXPORT WAS ABOVE 1 CRORE. WE WANT TO KNOW APPLICABILITY OF DOCUMENTS UNDER GST. CA ATTESTED LUT BOND AND BANK GUARANTEE REQUIRED ???. BOTH ARE REQUIRED OR SINGLE BANK GUARANTEE REQUIRED. PL HELP US........

AI Summary

Exporters Can Use LUT Instead of Bond for GST; Notification No.16/2017 Outlines Eligibility and Requirements A discussion on the requirements for export procedures under GST highlights the need for both a bond and a bank guarantee, with a 15% bank guarantee of the bond amount. However, banks often require 100% of the amount due to risk concerns. An alternative is the Letter of Undertaking (LUT), which can replace the bond for eligible exporters, as specified in Notification No.16/2017. This option is typically available to large exporters or those meeting specific criteria, while smaller exporters may still need to provide a bond with a bank guarantee.