With reference to clause 5 of Rule 96A of CGST Rules,2017 as inserted vide Ntf No. 15/2017- Central Tax dated 01.07.2017 "(5) The Board, by way of notification, may specify the conditions & safeguards under which a Letter of Undertaking may be furnished in place of a bond." It may be clarified as to whether any conditions & safeguard has been notified by the Board as on date, as certain parties have filed LUT for export in this office?
Yes, conditions & safeguards have been specified by Notification No. 16/2017- Central Tax dated 07.07.2017 & clarified in detail in Circular No. 4.4.2017- GST dated 07.07.2017. The sum & substance of these documents is that the facility of Letter of Undertaking in place of a bond is available to a registered a person who is either (a) a status holder as specified in 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. one crore, in the preceding financial year. The person should not have been prosecuted for any offence under the Central Goods & Services Tax Act,2017 (12 of 2017) or under any of the existing laws in a case where the amount tax evaded exceeds two hundred & fifty lakh rupees.