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        Case ID :
        GST

        Facility of furnishing Letter of Undertaking extended to more exporters

        October 1, 2017

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        Small exporters have brought to the notice of the Government the difficulties in furnishing bond with requisite bank guarantee. To facilitate exports under GST, it has been decided that the facility of furnishing Letter of Undertaking, in place of a bond, for exporting goods or services or both shall be allowed to exporters and no bank guarantee will be required.The relevant notification for this shall be issued in due course.

        The issue of cash blockage is expected to be partially addressed by this measure. More measures are under consideration.

        Letter of Undertaking allowed in place of bond for exporters, eliminating bank guarantee requirement to ease cash blockage. Provision permitting exporters to furnish a Letter of Undertaking in lieu of a bond for exports of goods and/or services under GST, with no bank guarantee requirement, is announced to address difficulties faced by small exporters in obtaining guarantees; a formal notification will be issued and further measures are under consideration.
                          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 allowed in place of bond for exporters, eliminating bank guarantee requirement to ease cash blockage.

                                Provision permitting exporters to furnish a Letter of Undertaking in lieu of a bond for exports of goods and/or services under GST, with no bank guarantee requirement, is announced to address difficulties faced by small exporters in obtaining guarantees; a formal notification will be issued and further measures are under consideration.


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