SME Times is powered by   
Search News
Just in:   • Standardization boosts domestic growth, exports: Prabhu  • PM interacts with farmers across the country  • General Electric to be removed from Dow index  • Truckers' strike enters second day, northeast comes to 'standstill'  • Nadda releases India's health profile, launches institutional profiling project 
Last updated: 03 Oct, 2017  

FIEO-logoTHMB SME exporters exempt from giving bank guarantee, FIEO hails move

   Top Stories
» Standardization boosts domestic growth, exports: Prabhu
» PM interacts with farmers across the country
» Govt declares national targets for off-shore wind power
» 'Small industries must get in-hand training on Industrial security'
» Govt to spend $1 bn to boost services exports: Prabhu
Saurabh Gupta | 03 Oct, 2017
To facilitate small exports under the Goods and Services Tax (GST), the government has exempted SME exporters from furnishing bank guarantee.

Welcoming the decision to dispense with Bank Guarantee requirement under Bond and replacing it with Legal Undertaking (LUT), Ganesh Kumar Gupta, President, FIEO said that this is much needed simplification which will help in reducing transaction time and cost of exporters.

FIEO Chief said that micro and small exporters will be immensely benefitted as they were struggling to get bank guarantee unless furnish collateral to the bank which affects their liquidity and thus flow of working capital impacting production.

FIEO said that we should gradually move towards e-LUT (Electronic Legal Undertaking) which can be furnished online so as to eliminate any physical interaction with the tax authorities.

Over a period of time, the requirement of LUT can also be eliminated, said Gupta, as matching of exports invoice with shipping bill is envisaged under GSTN, the purpose for which LUT is being asked for.

"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," government said in a release on Saturday.

The issue of cash blockage is expected to be partially addressed by this measure. More measures are under consideration, the release added.
Print the Page Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

Exporters exempt from giving bank guarantee
Naushd | Wed Oct 4 15:38:42 2017
Sir this notification by our government is most welcome and will help small exporters in big way and I really thank our Hon. finance Minister for understanding & helping small and medium exporters. This notification is effective from? If with immediate effect why our central excise and GST department not received any notification from the Board.

It's good decision by governent
Bhagawath Prasad | Wed Oct 4 02:54:08 2017
While I understand the implications of security measures forex getting loaded into exporters accounts , it was actually harming exporters with huge amount of paper work, I am glad that government realised it now to simplify exporters issues , i would request government to fund exporters liberally thru banks at much cheaper interest rates , it's critical to compete global market.

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 21 Jun, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(21)
» Modi interacts with Digital India beneficiaries(1)
» Fiscal deficit, GDP data: Is it a turnaround(1)
» Lend more to MSMEs, RBI urges NBFCs(1)
» RBI's surprise rate-hike(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter