Exporters Must Submit Bond or LUT for Tax-Free Exports Under CGST Rules 2017; LUT Valid for 12 Months.

The circular addresses the procedure for exporting goods and services without paying integrated tax, focusing on the requirement to furnish a bond or Letter of Undertaking (LUT) as per the Central Goods and Services Tax Rules, 2017. Exporters eligible under notification No. 16/2017 can use LUT, while others must submit a bond. A running bond is preferred to ease compliance burdens, covering the estimated tax liability. The jurisdictional Commissioner decides the bank guarantee amount, typically not exceeding 15% of the bond. LUTs are valid for 12 months, and acceptance procedures involve jurisdictional tax authorities. Existing container sealing practices continue until September 1, 2017.

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