TaxTMI 
TaxTMI 
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........
EXPORT PROCEEDURE UNDER GST
29 Jul 2017 
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Letter of Undertaking allows exporters to avoid bank guarantees under specified eligibility and compliance conditions.
Export under GST requires either a bond with a bank guarantee or an eligible Letter of Undertaking (LUT). Banks commonly demand full exposure despite references to a 15% bank guarantee. An LUT, when furnished, removes the need for a bank guarantee. LUT eligibility is confined to status holders or exporters with foreign inward remittances of at least ten percent of export turnover (minimum threshold in preceding year) and no prosecution for serious tax offences. The LUT must be submitted in duplicate in the annexure to FORM GST RFD-11 and executed by an authorised signatory on the exporter's letterhead. (AI Summary)
Export under GST requires either a bond with a bank guarantee or an eligible Letter of Undertaking (LUT). Banks commonly demand full exposure despite references to a 15% bank guarantee. An LUT, when furnished, removes the need for a bank guarantee. LUT eligibility is confined to status holders or exporters with foreign inward remittances of at least ten percent of export turnover (minimum threshold in preceding year) and no prosecution for serious tax offences. The LUT must be submitted in duplicate in the annexure to FORM GST RFD-11 and executed by an authorised signatory on the exporter's letterhead. (AI Summary)