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

[CASeetharaman KC]

Letter of Undertaking has to be provided for each financial year separately. Now LUTs are provided online and the period would be from April to March. You can even upload it onlineo now.

Also there is a place where the old LUT which was provided by you and approved by the department can be uploaded.This will help you to prove that the online LUT now provided is a continuation of the earlier one.

[Ganeshan Kalyani]

In my view, IGST is payable in the absence of Letter of Undertaking (LUT). Thereafter, refund can be applied for the IGST paid.

[KASTURI SETHI]

I support the views of both experts.

AI Summary

Letter of Undertaking requirement: absence triggers IGST payment, with potential refund after compliance and online filing to regularize exports.
A Letter of Undertaking must be furnished each financial year (April-March) and is filed online; an earlier approved LUT can be uploaded to evidence continuity. If no valid LUT exists, IGST is payable on exports, although refund of IGST paid may thereafter be claimed.