Finance Ministry permits exporters to furnish 'Letter of Undertaking' in place of bond

Last Updated: Sat, Sep 30, 2017 14:10 hrs
FILE PHOTO: India's Finance and Defence Minister Arun Jaitley attends a seminar with state finance ministers on the Goods and Services Tax (GST) issues in Srinagar

Ahead of Finance Minister Arun Jaitley's meeting with exporters and other industry representatives regarding the grievances they face under the new Goods and Services Tax (GST) regime, the Ministry of Finance announced that exporters will now be permitted to furnish a Letter of Undertaking in place of a bond.

This facility of furnishing a Letter of Undertaking in place of a bond, the ministry clarified, would be permitted for exporters exporting goods or services or both. Further, no bank guarantee will be required, the Ministry clarified, adding that a relevant notification for this will be issued in due course.

FM Jaitley is reportedly meeting industry representatives, including exporters, in order to discuss any concerns they may want to raise such as input tax credit, timely refund of duties paid by exporters, and so on.

Industry bodies like FICCI, CII and FIEO are said to be attending the meeting.

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