Answer

1. F

   Facts

   Where LUT is not allowed, the exporter furnishes a bond in RFD-11 covering the estimated tax on exports. Circular 8/2017-GST says the bank guarantee is normally up to 15 percent of the bond amount.

2. P

   Provisions and law

   • Circular 8/2017-GSTLUT available to all exporters except those prosecuted for evasion above ₹250 lakh; valid for the financial year; deemed accepted if not accepted within 3 working days
   • Rule 96A, CGST Rules 2017Export under LUT or bond: goods to be exported within 3 months of invoice and payment for services received within 1 year, else tax with interest
3. A

   Analysis

   If you expect IGST of ₹20 lakh on exports during the bond period, the bond is ₹20 lakh with a bank guarantee of about ₹3 lakh. The bond is a running bond, debited as exports happen and credited when proof is shown. Discuss with the officer whether the guarantee can be waived.

4. C

   Conclusion

   1. 1Estimate the tax on exports for the period.
   2. 2Prepare the bond on non-judicial stamp paper.
   3. 3Obtain the bank guarantee.
   4. 4Submit to the jurisdictional officer and keep the acceptance.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.