Under the GST regime, exporters are expected to pay the IGST on the export of products or services and then claim a refund against the tax paid. Needless to say, this would have squeezed the cash flow cycle for many businesses.
Exporters are instead given an option to file a Letter of Undertaking under form GST RFD 11 instead of paying the integrated tax upfront.
The following entities can provide an export bond or LUT in the GST RFD 11 without having to pay an integrated tax upfront
However, entities that have been prosecuted for tax evasion exceeding Rs. 2.5 crores in the past or any other offence under the IGST Act, CGST Act or any other prevailing statute, are not eligible to apply for an LUT.
Under the GST regime, exporters are expected to pay the IGST on the export of products or services and then claim a refund against the tax paid. Needless to say, this would have squeezed the cash flow cycle for many businesses.
Exporters are instead given an option to file a Letter of Undertaking under form GST RFD 11 instead of paying the integrated tax upfront.
The following entities can provide an export bond or LUT in the GST RFD 11 without having to pay an integrated tax upfront
However, entities that have been prosecuted for tax evasion exceeding Rs. 2.5 crores in the past or any other offence under the IGST Act, CGST Act or any other prevailing statute, are not eligible to apply for an LUT.