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Rupee payments allowed for exports to Bhutan under RBI guidelines: Expert

Acceptance of LUT for supplies of goods or services to countries outside India will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange

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TNC Rajagopalan New Delhi
Q. We have received an order for export to Bhutan against payment in Indian rupees. Can we accept this order and export under LUT?

Yes. Regulation 3(1)(A)(ii) of the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 allows you to receive payment for exports to Bhutan in Indian rupees. CBEC Circular no. 88/07/2-019-GST dated February 1, 2019, clarifies that the acceptance of LUT for supplies of goods or services to countries outside India will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange, as long as they are in accordance with the

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