Option Not to Give Bond and Give LOU instead (Notification 16/2017)

Person Exporting Goods or Services have 2 options

• Pay Full IGST and then claim Refund
• Do Not pay IGST and export goods after paying Bond or Letter of Undertaking Government

Government has issued Notification 16/2017 CGST (Non-Rate)

As per this notification, following persons need not submit a bond

1. A status Holder (as per Paragraph 5 of Foreign Trade Policy)
2. In last year, foreign inward remittances to minimum of 10% of turnover which should not be less than 1 crore received in preceding financial year
   And Has not been prosecuted of any offense under CGST or any existing laws where amount of tax evaded does not exceed 250 lacs

How to Furnish Letter of undertaking

It shall be furnished in duplicate

In Prescribed Form GST RFD -11

And it shall be  executed by MD/Partner/Director or other Authorized Person

In letter head of registered person (Company letterhead)

Conditions For LUT Corrigendum