Bond or LUT along with Shipping Bill

1. As per rule 96A of the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.

2. The following registered person shall be eligible for submission of Letter of Undertaking in place of a bond: –

a. a status holder as specified in the Foreign Trade Policy 2015- 2020; or

b. who has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year, and he has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees. (Notification No. 16/2017-Central Tax dated 07th July, 2017 refers)

3. The bond shall be furnished on non-judicial stamp paper of the value as applicable in the State in which bond is being furnished.
4. The exporters shall furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself.

5. Based on the track record of exporter, a bank guarantee required to be submitted along with the bond may be waived off by the jurisdictional GST Commissioner. The bank guarantee should normally not exceed 15% of the bond amount. (Circular No. 4/4/2017-GST dated 07th July, 2017 refers)

GSTIN / PAN and Invoice information in Shipping Bill

Drawback after GST regime

GST on Export : FAQ’s

GST on Textile : FAQ’s

GST on MSME : FAQ’s

Related Topic on GST