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BOND or LUT

27 April 2018

I want to export machinery without payment of IGST then I have to file lut in GST site.
but my shipping company demanding BOND.
please help in this matter now what to do?

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9 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 27 April 2018

If u have file the application for LUT on portal & Got the ARN then
Plz send your CHA the copy of Circular 40/14/2018 , he will not ask u for the Bond

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Bhargav Dhorajiya (69 Points)
Replied 27 April 2018

what if I had not filled LUT with GST?

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 27 April 2018

u have to charge IGST on ur export invoice thats all

Bhargav Dhorajiya (69 Points)
Replied 27 April 2018

But if I file LUT with portal then it's not valid then?

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 27 April 2018

Yes , that what iam saying , if u file application for lut on portal & got the ARN.,.. then no need to charge IGST on export

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Bhargav Dhorajiya (69 Points)
Replied 27 April 2018

OK...
thank you...

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 27 April 2018

U r welocme !

Bhargav Dhorajiya (69 Points)
Replied 28 April 2018

sir if I send machine for repair purpose outside India then which document is required? bond or lut?

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 April 2018

Bharhav ji

Diference between bond & Lut

Any registered taxpayer exporting goods can make use of LUTs. However, any person who has been prosecuted for tax evasion for an amount of Rs. 2.5 Crores or above under the act is not eligible to furnish LUTs.

The validity of such LUT’s is for a period of one year (till the end of financial year). An exporter furnishing LUT’s are required to furnish fresh LUT for each financial year. If the conditions mentioned in LUT are not satisfied within the time-limit, the privileges are revoked and the exporter will have to furnish bonds.

For all the other assesses (along with the ones who have been prosecuted for tax evasion of Rs. 2.5 Crores or above under the GST laws), bonds should be furnished if the export is being made without payment of IGST.