Feature of Bond and LUT filing under GST

There is much compliance which a company needs to follow; however, we would like to discuss few most important aspects about the bond and LUT filings :

 No Taxes : If LUT or bond is filed, and then no taxes are required to be paid on exports.

 Filings : The filing needs to be done manually and there is no online portal.

 Annual : You need to visit tax dept. and submit the documents at regular intervals.

Advantages

•  No tax on exports
•  Save working capital
•  No headache of monthly payment
• No headache of claiming refund

What all compliances to be made after submission of bond?

Once the application is accepted by the tax department, you need to submit the export documents to the tax department on regular basis. You can file the documents either on monthly, quarterly or on every shipment. This is because your application is generally valid for one year and needs to be renewed each year. Therefore, if you do not renew the bond or LUT, then you shall become ineligible to export without payment of tax.

Eligibility for Export under LUT

All GST registered goods and service exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws.In such cases, where the exporter is not eligible to file LUT, they would have to furnish an export bond