Small exporters exempted from furnishing bank guarantee

 

To give relief to small exporters, the government has decided to exempt small exporters from furnishing bank guarantee for shipping goods and services.

In a statement, Finance Ministry said that 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.

The decision comes a day after exporters met Finance Minister Arun Jaitley for resolution of GST-related problems to boost overseas shipments.