Answer

1. F

   Facts

   Circular 8/2017-GST allows all registered exporters to use LUT, except those prosecuted for tax evasion of more than ₹250 lakh under any law. Those persons must furnish a bond backed by a bank guarantee instead.

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

   The bar is narrow: only prosecution, not just a notice or a pending demand, for evasion above ₹250 lakh. A small exporter with a pending show cause notice can still file LUT. If you do fall in the barred category, the bond is on stamp paper with a bank guarantee, usually 15 percent of the bond amount as per the circular.

4. C

   Conclusion

   1. 1Check whether any prosecution for evasion above ₹250 lakh is launched against the business.
   2. 2If not, file the LUT online.
   3. 3If yes, prepare a bond with bank guarantee and submit it to the jurisdictional officer.
   4. 4Keep the acceptance on record.

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