Find
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.
GST
Who cannot use LUT and must give a bond
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Provisions
Circular 8/2017-GST; Rule 96A, CGST Rules 2017
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.
Close
- Check whether any prosecution for evasion above ₹250 lakh is launched against the business.
- If not, file the LUT online.
- If yes, prepare a bond with bank guarantee and submit it to the jurisdictional officer.
- Keep the acceptance on record.
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