LUT /BOND is to be submitted by an Exporter and by Supplier to SEZ units or developers to jurisdictinal commissioner as pre-requisite document. Pre-requisite means before initiating the transaction or raising an Invoice. This option is for the suppliers who do not wish to pay IGST at the time of Export or supply to SEZ units.
Bond or LUT needs to be furnished in Form GST RFD-11 to bind themselves to pay the tax due along with Interest specified under section 50(1). Bond or LUT submitted is valid for one financial year. Bond submitted is a “running Bond” which means that supplier need not submit separate Bond for every transaction. Exporters needs to take care that Bond must cover the IGST amount involved in the transaction. Once the transaction is complete the Bond is again restored. Completion of transaction should be interpreted as complete Provision of Supply of goods/Services is done and payment for the same is received thereof. Along with the bond, one needs to Furnish a Bank Guarantee to the extend of 15% of the Bond Amount.
Option to file Letter of Undertaking in place of bond is not available to all the exporters. Following eligibility criteria needs to be fulfilled to be eligible to File Letter of undertaking
A registered person shall be a status holder as specified in paragraph 5 of the Foreign Trade Policy 2015- 2020 Or
A Registered person who has received the due foreign inward remittance amounting to a minimum of 10% of the export Turnover, which should not be less than one crore Rupees.
We have attached Draft formats of documents required to be furnished along with GST RFD-11. Also a self declaration is to be Furnished on a Letter head confirming that “registered person is not prosecuted for any offence under Central Goods and Service Act 2017 or under any of the existing Laws in case where tax amount evaded exceeds Rs Two Hundred and Fifty Lacs Rupees.
Here is the checklist of the documents for your ready reference:-
List of documents required to furnish LUT
1. Copy of Status Holder certificate issued by DGFT/ Development Commissioner
Bank FIRC of 10% of the export turnover which should not less than 1 crore in financial year:-
2. Letter of Undertaking to be executed on letter head- to be provided in duplicate; (also to be signed by witnesses):- Please take print out of the attached Letters on your Letter head duly signed by Two Witness.
Bond on non Judicial Stamp paper, of the Value as per Stamps as applicable in the state in which the Bond is submitted. Along with a Bank Guarantee to the extend of 15% of the Bond Value.
3. Declaration required that the registered has not been prosecuted for any offence involving tax, where the tax evaded is above Rs. 250 lakhs; :– Please take two print out- self attestion.
4. GSTIN certificate copy; Please take two print out – self attestion
5. Proof to indicate principle place of business- preferably copy of application for registration for GST; Registration application form of GST would suffice
6. FORM RFD- 11 to be provided in duplicate;:- Please take two print out
7. CA Certificate confirming receipt of foreign inwards remittance not less than Rs 1 crore.
8. If the taxpayer is a public or private limited company than board resolution for appointment of Authorized signatory is required.
9. Covering Letter on the Letter head of the company.
Download Following Formats in Word Format