Govt extends facility of furnishing LoU to more exporters

India Infoline News Service | Mumbai | October 02, 2017 08:32 IST

The government has decided to exempt small exporters from furnishing bank guarantee for shipping goods and services. The move comes a day after the meeting between FM Arun Jaitley and exporters for resolution of GST-related problems to boost overseas shipments.

The government has decided to exempt small exporters from furnishing bank guarantee for shipping goods and services. The move comes a day after the meeting between FM Arun Jaitley and exporters for resolution of GST-related problems to boost overseas shipments.
 
The Finance Ministry clarified that a “Letter of Undertaking” will have to be submitted in place of a bond, for exporting both goods or services. Small exporters had brought to the notice of the government the difficulties in furnishing bond with requisite bank guarantee, said a Finance Ministry release.
 
To facilitate exports under GST, it has been decided that the facility of furnishing Letter of Undertaking, in place of a bond, for exporting goods or services or both shall be allowed to exporters and no bank guarantee will be required, it said.
 
The relevant notification for this shall be issued in due course. The issue of cash blockage is expected to be partially addressed by this measure. More measures are under consideration, it added.

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