This circular provides clarification on issues relating to furnishing and acceptance of Bonds or Letters of Undertaking (LUT) for exports, particularly in view of difficulties faced by field officers in accessing LUTs submitted online.

It clarifies that exporters are required to furnish the LUT electronically in FORM GST RFD-11 on the common portal. An LUT is deemed to be accepted immediately upon generation of an online acknowledgement bearing the Application Reference Number (ARN). There is no requirement to submit any physical documents or copies of the LUT to the jurisdictional tax office for its acceptance.

The circular further clarifies that acceptance of LUT or bond is automatic and system-driven, and no separate approval by tax officers is required. However, if it is subsequently found that the exporter was not eligible to furnish an LUT in place of a bond as per the applicable notification, such LUT shall be liable to rejection. In such cases, the rejection will be treated as effective from the beginning.

These clarifications partially modify the earlier circular on the subject and are intended to simplify export procedures, remove manual intervention, and ensure smooth processing of export-related compliances under GST.