Export and Import under GST are mainly governed by IGST Act as they are treated as inter-state supply. In case where, goods are exported with the payment of IGST, the exporter needs to pay IGST as usual as domestic trade, however one can claim the refund later on.  But, in scenarios, where one wants to export the goods or services without the payment of IGST, then a bond or a Letter of Undertaking (LUT)is required to be furnished with the department.  Hence, the LUT/Bond is highly important in case of export of goods and services.

Bond / LUT is basically an undertaking furnished by an exporter to satisfy the department that he shall obey all the rules and regulations in relation to the exports made by him. The LUT / Bond is filed in the prescribed format of GST RFD – 11 along with the other relevant documents.

Let us discuss on the procedures involved in filing the Bond / LUT for exports under GST :-

 

STEP – 1 : To Check whether Bond or LUT to be filed on the basis of the condition and the jurisdiction

The initial step consists of a check as to which document has to be filed, whether Bond or Letter of Undertaking in terms of prescribed conditions. In case, bond is required to be filed then additional documents relating to bank guarantee is also required to be prepared. Further, the jurisdiction, as per the assessee’s area, is also to be looked correctly as wrong filing  with wrong jurisdiction shall not be accepted.

 

STEP – 2 : Prepare all the necessary documents for LT U and bond under GST

There are two complete different sets of documents required to be filed along with the GST RFD – 11 in both the cases, i.e., bond or LUT.

Documents For LUT :

• FORM  RFD 11 on letter head
• UT 1 bond on stamp paper
• Authority letter
• Other supporting documents.

Documents For Bond :

• FORM RFD 11 on letter head
• Bond on stamp paper
• Bank guarantee
• Authority letter
• Other supporting documents.

 

STEP – 3 : Prepare duplicate copy of LUT or bond

After all the above documents are prepared in line, a duplicate copy of the same has to be prepared along with the office copy.

 

STEP – 4 : Visit the department

Verify the documents from the relevant officer post visiting the department. It should be noted that that proper officer has to be visited as per the area’s jurisdiction to avoid any rejections or resubmissions.

 

STEP – 5 : Take Acknowledgment and re-collect the letter after 2 to 3 days

Once the Bond / LUT are filed, an acknowledgement shall be issued on the basis of which the officer shall issue the signed letter after 2 to 3 days.

 

For more queries, please contact Taxmantra.com .

__________________________________________________________________________________________________________________________________________