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Bond / Letter of Undertaking for Exports:- CBEC clarification on Issues


Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle 4th Fl., 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684

* E-mail : Web :

EPC/LIC/LUT_BOND    5th July  2017




Bond / Letter of Undertaking for Exports:- CBEC clarification on  Issues

Dear Members,


As you are aware, under GST regime, Supplies of goods and services for exports have been categorized as 'Zero Rated Supply' implying that goods could be exported under bond or Letter of Undertaking without payment of integrated tax followed by claim of refund of unutilized input tax credit or on payment of integrated tax with provision for refund of the tax paid.


However, we have received several queries from the  members on the submission of LUT/ Bond  which we have taken up the  CBEC/ GST Officers.


Taking cognizance of the representations  from the trade/ industry, CBEC has issued  Circular No. 2/2/2017-GST  dated 4th July 2017 giving clarifications on where, whom and how to submit the LUT/ BOND.


For the convenience  of the  members, we reproduce below the clarifications given in the above-said circular-


  • Whereas, as per rule 96A of the Central Goods and Services Tax Rules, 2017, any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking. This bond or Letter of Undertaking is required to be furnished in FORM GST RFD-11 on the common portal. Further, Circular No. 26/2017- Customs dated 1st July, 2017 has clarified that the procedure as prescribed under rule 96A of the said rules requires to be followed for the export of goods from 1st July, 2017.


  • Another issue being raised by various stakeholders is that the Bond/Letter of Undertaking is required to be given through the proper officer which is to be furnished to the jurisdictional Commissioner as per sub-rule (1) of rule 96A of the said rules. Taking cognizance of the fact that a large number of such Bonds/Letter of Undertakings would be required to be filed by the registered exporters who would be located at a distance from the office of the jurisdictional Commissioner, it is understood that the furnishing of such bonds/undertakings before the jurisdictional Commissioner may cause hardship to the exporters. Thus, in exercise of the powers conferred by sub-section (3) of section 5 of the CGST Act, 2017, it is hereby stated that the acceptance of the Bond/Letter of Undertaking required to be furnished by the exporter under rule 96A of the said rules shall be done by the jurisdictional Deputy/Assistant Commissioner.


  • Further, in exercise of the powers conferred by section 168 of the said Act, for the purpose of uniformity in the implementation of the said Act, the Bond/Letter of Undertaking required to be furnished under rule 96A of the said rules may be furnished manually to the jurisdictional Deputy/Assistant Commissioner in the format specified in FORM RFD-11 till the module for furnishing of FORM RFD-11 is available on the common portal. The exporters may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs ( and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner.
  • The above specified provisions shall be applicable to all applications which have been filed on or after 1st July, 2017.


Member-exporters are requested to take note of above points  regarding export under Bond/ LUT and do the needful.  The original circular can be downloaded from the below link-


In case of persistent issues, please mail us on  &  so that we can take up with  CBEC/ GST accordingly.


Thanking You,

Yours faithfully,


Executive Director



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