Answer

1. F

   Facts

   Circular 8/2017-GST says if tax is not paid under Rule 96A after a default, the LUT facility is withdrawn. It is restored once the amount due is paid.

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

   While withdrawn, every export must carry IGST, which blocks cash. Clearing the dues with interest restores the LUT. Ask the officer for written confirmation after payment.

4. C

   Conclusion

   1. 1Get the withdrawal communication and the amount.
   2. 2Pay the amount with interest through DRC-03.
   3. 3Write to the officer with the DRC-03 acknowledgement asking for restoration.
   4. 4Resume exports under LUT after confirmation.

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