How to file bond/LUT for exports under GST online! – Step by step procedure for filing/furnishing LUT/BOND for export

1.0 Introduction 

Fare and import under GST are dealt with as interstate supply and subsequently administered for the most part by the IGST demonstration. According to the IGST demonstration, there are just two courses conceivable to send out merchandise or administrations in India which are as per the following: 

Fare of products and enterprises without installment of IGST 

Fare of products and enterprises with installment of IGST. 

On account of second alternative, one have to pay IGST as normal as residential exchange, be that as it may one can assert the discount later on. In any case, in the event that somebody needs to trade the merchandise or administrations from India without installment of IGST, at that point he have to record/outfit a bond or letter of undertaking (LUT) with the division. 

Subsequently, you can see the significance of LUT and bond if there should arise an occurrence of fare of merchandise and ventures. Give us a chance to examine the bond and LUT in points of interest alongside the total technique as how to document bond and LUT. 

2.0 What is a bond/LUT? Is there any configuration recommended for bond or LUT? 

Bond or LUT is a report through which an exporter fulfills the office that the exporter should comply with every one of the standards and directions identifying with send out. The bond or LUT is documented in the recommended configuration of GST RFD – 11. Nonetheless, numerous different archives are likewise required which we should talk about later on in this article. 

3.0 What to document a bond or LUT for new and existing exporters? 

According to notice no.16/2017, the administration indicates the conditions and defends for LUT and bond. As a general guidelines, the exporter is required to document the bond alongside bank certification to the office for fare of products and ventures. 

Be that as it may, if the accompanying conditions are fulfilled, at that point just a letter of undertaking can be recorded rather than a bond with bank ensure. 

Exporter ought to have gotten the due outside internal settlements adding up to at least 10% of the fare turnover, which ought not be short of what one crore rupees, in the former money related year. 

He has not been arraigned for any offense under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the current laws on the off chance that where the measure of duty avoided surpasses two hundred and fifty lakh rupees. 

Accordingly, in both the conditions are fulfilled, and after that a letter of undertaking (LUT) can be recorded. 

4.0 How to figure the bond sum for trades? 

According to the administration roundabout, the bond sum might be equivalent to the assessment sum on the earlier year turnover or the normal fare turnover. E.g. on the off chance that my aggregate expected turnover is Rs.2 crore and the duty rate on my thing is 18%, at that point the security sum should be Rs.36 lakh. 

5.0 Calculation of bank ensure for bond petitioning for sends out under GST 

The administration has endorsed that bank certification ought not be under 15% of the bond sum. Consequently, if the bond sum is equivalent to Rs.10 lakh, at that point you have to get the bank assurance of atleast 15%, i.e. Rs.1.50 Lakh. 

6.0 Procedure to record bond/LUT for sends out under GST 

Give us now a chance to examine the total method to document the bond/LUT for fare of products and enterprises. 

#Step no.1 – Check what to record bond or LUT in view of condition alongside ward 

The initial step is to check what is required to be recorded, a bond or LUT as far as the condition specified in the notice as examined previously. In the event that a bond is required to be recorded, at that point extra archives identifying with bank ensure is likewise should be readied. 

Further, you should likewise search for your locale effectively according to your territory. This is on the grounds that the document might not be acknowledged if recorded in wrong ward. 

#Step no.2 – Prepare all the important records for LT U and bond under GST 

Records prerequisites for bond and LUT are totally extraordinary. Consequently, let us talk about the archives required part for LUT and security independently. Give us a chance to take this one by one: 

Records required for LUT under GST 

Here is the rundown of records required for documenting of LUT under GST: 

Frame RFD 11 on letter head 

UT 1 bond on stamp paper 

Expert letter 

Other supporting archives. 

Archives required for bond under GST 

Here is the rundown of archives required for recording of bond under GST: 

Shape RFD 11 on letter head 

Bond on stamp paper 

Bank ensure 

Expert letter 

Other supporting archives 

#Step no. 3 – Prepare copy duplicate of LUT or bond with certain confirmation 

When you have arranged every one of the archives according to stage 2, the subsequent stage is to recheck the reports and set up a copy duplicate alongside office duplicate. One thing you should present beyond any doubt in defense of recording of LUT that you convey certain confirmations to demonstrate that you fulfill the conditions as specified in the notice. 

#Step no.4 – Visit the office and go to your division 

In the wake of rechecking the archives and setting up the two arrangements of records, the subsequent stage is to visit the GST office and got to your purview. When you reach there, ensure you went to the correct officer and get the archives confirmed from him. There might be a possibility, that he may not engage you and he may request that you present the records at the gathering. 

All things considered, you ought to deal with the circumstance well and get the docs checked to stay away from dismissal or resubmission later on. 

#Step no.5 – Get the records checked appropriately with the officer 

When you achieve the division, get the records confirmed from the best possible officer. Further, the correct officer may request certain more records, all things considered, you ought to set up the rundown of extra archives required and come following day and present the required reports. 

#Step no.6 – Take Acknowledgment and return following 2 to 3 days 

When you present the document, bear in mind to take affirmation and return following 2 to 3 days to get the letter marked. Contact your appropriate officer in the event that you discover any issue with the letter. 

7.0 In whose name the bank assurance ought to be petitioned for documenting bond under GST 

The bank certification ought to be recorded for the sake of "Leader of India (hereinafter called " The Government") acting through the Assist. Comm./Dy. Magistrate of Central Tax (please deliver to suitable division)." 

8.0 Is it compulsory to document LUT/bond for fare of administrations? 

Truly, it is obligatory to document LUT or bond for fare of administrations also on the off chance that you need to send out without charging GST on the same. In the event that you don't document the LUT or security, at that point you have to charge GST and after that claim the discount later on.