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Is bank guarantee (BG) required for filing bond for exports under GST? – How to calculate bank guarantee for filing bond under GST? - Hire CA : Knowledgebase
There are two courses conceivable to send out under GST; one path is to trade by paying GST and guaranteeing discount later on. The second path is to send out without charging GST. To send out without charging GST, one needs to record bond or LUT with the focal duty division. On the off chance that in the event that the bond is to be recorded, a duplicate of bank ensure is additionally required to be documented. Give us a chance to comprehend when bond is required and how bank ensure is documented.
2.0 When bond is recorded set up of letter?
According to government warning, bond is required to be recorded, when add up to send out receipts is under Rs.1 crore or 10% of the aggregate fare continues. On the off chance that the fare receipts is more than Rs.1 crore, than a letter of undertaking should be adequate to be recorded set up of bond.
3.0 What measure of Bank ensure (BG) is to require for bond?
In the event that you are documenting the bond, at that point a bank ensure equal to 15% of the bond sum is required to be recorded. Bond sum is the sum equivalent to add up to GST obligation on the aggregate fare turnover.
Give us a chance to comprehend it by method for instance.
Mr. A joins an organization to begin the import trade business. He anticipates that the turnover will be around Rs.50 lakh. Figure the bond sum and the BG required to be recorded with the focal assessment division. (Expect GST rate 18%)
Add up to bond ought to be equivalent to assess risk on send out. Consequently, the bond sum should be:
