This circular provides consolidated clarifications on issues relating to furnishing of Bond or Letter of Undertaking (LUT) for export of goods or services without payment of integrated tax, in light of Notification No. 37/2017–Central Tax dated 4 October 2017.

It clarifies that the facility of exporting under LUT has been extended to all registered exporters, except those prosecuted for serious tax offences involving tax evasion exceeding ₹250 lakh. LUT shall be valid for the entire financial year, subject to compliance with export timelines under rule 96A of the CGST Rules. In case of default, the facility may be withdrawn and restored upon payment of due tax.

Pending availability of FORM GST RFD-11 on the common portal, exporters may submit LUT manually in the prescribed format to the jurisdictional Assistant/Deputy Commissioner. A self-declaration regarding non-prosecution is sufficient at the time of furnishing LUT, with verification to be done post facto. LUT or bond is required to be accepted within three working days, failing which it is deemed accepted.

The circular also clarifies requirements relating to bank guarantees, running bonds, sealing of export consignments, treatment of supplies to EOUs, absence of CT-1 under GST, and permissibility of LUT for exports to SEZs, Nepal and Bhutan, subject to RBI guidelines. Earlier circulars on the subject stand rescinded, and this circular serves as a comprehensive guidance to ensure uniformity and ease of exports under GST.