In exercise of the powers conferred by rule 96A(5) of the CGST Rules, 2017,

Conditions for furnishing LUT

CBEC specifies the conditions and safeguards for the RP who intends to supply goods or services for export without payment of integrated tax, for furnishing a LUT in place of a Bond

i. The following RP shall be eligible for submission of Letter of Undertaking in place of a bond:-

(a) a status holder as specified in paragraph 5 of 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 Rs.1 cr, in the preceding FY,

and he has not been prosecuted for any offence under the CGST Act, 2017  or under any of the existing laws in case where the amount of tax evaded exceeds Rs.250 lacs.

ii. The LUT shall be furnished in duplicate for a FY in the annexure to GST RFD – 11 referred to in rule 96A(1) of the CGST Rules, 2017 and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor on the letter head of the RP.