Export of Services without renewal of Bond for export and without having Lut

[Balkar Singh]

Dear Sir,

We are doing business of IT export services in Mohali, Punjab. Our company has taken 'Acceptance of Bond' letter from Central excise dept date 22.9.2017 with bank guarantee which was valid up to 31.8.2018. We have taken Lut on 28.9.2018. We continue to export after 31st March 2018 till August 2018 on basis of bank guarantee and it was not in our knowledge to renew the bond after 31st March 2018 because validity period was not mentioned on 'Acceptance of Bond' letter .

My question is -

What is validity period of 'Acceptance of Bond' ?.

Do we have to pay any penalty for export we did from April 2018 to August 2018 without renewal of Bond ?.

Please share your valuable inputs.

Thanks in advance.

Regards,

Balkar Singh

AI Summary

IT Export Business Faces Penalties for Exporting Without Renewed LUT; IGST Payment and Refund Options Explored A business in Mohali, Punjab, engaged in IT export services, inquired about the validity of an 'Acceptance of Bond' for exports and potential penalties for exporting from April to August 2018 without renewing the bond. The bond, accepted on September 22, 2017, had a bank guarantee valid until August 31, 2018. Replies indicated that a Letter of Undertaking (LUT) must be renewed annually, and IGST may be payable in the absence of a valid LUT, with the possibility of applying for a refund. The business was advised to upload the old LUT to prove continuity.