Simplifying Export Procedures: Letter of Undertaking for GST

Central Board of Excise and Customs outlines conditions for using a Letter of Undertaking (LUT) instead of a bond.

Eligible entities include status holders as per Foreign Trade Policy 2015-2020 or those meeting specified financial criteria. Financial criteria entail receiving a minimum of 10% foreign inward remittances, not less than one crore rupees, in the previous fiscal year.

Entities must not face prosecution for tax evasion exceeding two hundred and fifty lakh rupees. LUT submission duplicates annually via FORM GST RFD – 11 annexure.

Authorized signatories include working partners, Managing Directors, Company Secretaries, or duly authorized persons. Aims to streamline export processes, reducing administrative burdens for eligible entities.