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Should there be LUT along with bond and bank guarantee ?

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Christine Diaz

142 Points Posted on 10 May 2021

I have an OPC. It offers export to service to company outside India . It falls in 18 percent gst bracket. Company income would be 54 lakhs per year. Director salary would be 45 lakhs per year. I guess gst would be 9.72 lakhs ( 18 percent of company income ).

In order to avoid paying gst, should i furnish LUT along with bond worth 9.72 lakhs and bank guarantee of 10 percent of that amount ?

Or just LUT is enough at gst portal ?

Thanks :)

Replies (2)

Quick Summary

This discussion clarifies the requirement for GST documentation when exporting services from India. For companies exporting services and falling within the 18% GST bracket, the primary question is whether an LUT (Letter of Undertaking) alone is sufficient, or if a bond and bank guarantee are also necessary. The consensus is that an LUT submitted via the GST portal is generally enough to avoid paying GST on exports.