Export Without IGST — LUT Conditions Notified

Notification No.: 16/2017 – Central Tax
Date of Notification: 7th July 2017
Relevant Sections and Rules:

• Central GST Rules, 2017: Rule 96A(5)
• Central GST Act, 2017: Section 54 read with Section 164 (rule-making power)
• Integrated GST Act: Not directly applicable

Summary of Notification

Conditions for Furnishing Letter of Undertaking (LUT) in Place of Bond for Exports without IGST Payment:
In exercise of the powers under Rule 96A(5) of the CGST Rules, 2017, the Central Board of Excise and Customs notified the conditions and safeguards for exporters who wish to furnish a Letter of Undertaking (LUT) instead of a bond for making exports without payment of Integrated Tax (IGST). Eligibility criteria are:

1. Status Holder Exporters as defined in Para 5 of the Foreign Trade Policy 2015–2020; or
2. Exporters who received foreign inward remittance of at least:
   • 10% of export turnover, and
   • Not less than ₹1 crore in the preceding financial year.

Additionally, the exporter must not have been prosecuted for any tax evasion offence exceeding ₹2.5 crore under GST or any previous tax laws.

Procedure for Submission:

• The LUT must be submitted in duplicate for each financial year, using the annexure to FORM GST RFD-11.
• It must be executed on the registered person’s letterhead by an authorized signatory such as:
  • Working Partner
  • Managing Director
  • Company Secretary
  • Proprietor
  • Or any authorized person by the Board of Directors

Source: Notification No.: 16/2017 – Central Tax