Circular No.
8/8/2017-GST
F.
No. 349/74/2017-GST (Pt.) Vol.-II
Government
of India
Ministry of Finance
Department
of Revenue
Central
Board of Excise and Customs
GST
Policy Wing
New
Delhi, Dated the 4th October, 2017
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: Clarification on issues related to furnishing
of Bond/Letter of Undertaking for
exports
In view of the difficulties being faced by the exporters in submission of bonds/Letter of
Undertaking (LUT for short) for exporting goods or services or both without payment of
integrated tax, Notification No. 37/2017
– Central Tax dated 4th October, 2017 has been issued which extends the facility of LUT to all exporters under rule 96A of the Central Goods and
Services Tax
Rules, 2017 (hereafter
referred
to as
“the CGST Rules”)
subject to certain conditions and safeguards. This notification has been issued in supersession of Notification No.16/2017 – Central Tax dated 7th July, 2017 except as respects things done or omitted to be done before such
supersession.
2. In the light of the new notification, three circulars in this matter, namely Circular No.2/2/2017 – GST dated 5th July, 2017, Circular No. 4/4/2017 – GST dated 7th July, 2017 and Circular No. 5/5/2017 – GST dated 11th August, 2017, which were issued for providing clarity on the procedure to be followed
for
export
under
bond/LUT,
now
require revision and aconsolidated circular on this
matter
is
warranted. Accordingly,
to
ensure uniformity in the procedure in this regard, the Board, in exercise of its powers conferred under section 168 (1) of
the Central Goods and Services
Tax
Act, 2017 clarifies the following issues:
(a) Eligibility to export under LUT: The facility of export under LUT has been now extended to all registered persons who intend to supply goods or services for export
without payment of integrated tax except
those who have been prosecuted for
any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees unlike Notification No. 16/2017-Central Tax dated July, 2017 which extended the facility of export under LUT to status holder as specified in paragraph 5 of the Foreign Trade Policy 2015-2020 and to persons receiving a minimum foreign inward remittance of
10% of the export turnover in the preceding financial year which was not less than Rs. one crore.
(b) Validity of LUT: The LUT shall be valid for the whole financial year in which it is
tendered. However, in case the goods are
not exported within the time specified in sub- rule (1) of rule 96A of the CGST Rules and the registered person fails to pay the amount
mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn. If the amount mentioned in the
said sub-rule is
paid subsequently, the
facility of export under LUT shall be restored. As a result, exports, during the period
from when the facility to export under LUT
is withdrawn till the time the same is
restored, shall be
either on
payment
of the applicable integrated
tax or under bond with bank guarantee.
(c) Form
for
bond/LUT: Till the time FORM GST RFD-11 is available on the common
portal, the registered person (exporters) may download the FORM GST RFD-11 from
the website of the Central Board
of Excise and Customs (www.cbec.gov.in)
and
furnish the duly
filled form to the jurisdictional Deputy/Assistant Commissioner having
jurisdiction over their principal place of business. The LUT shall be furnished on the
letter head of the registered person, in duplicate, and it shall be executed by
the working partner, the Managing
Director or the Company Secretary or the proprietor or by a person duly authorised by
such working partner or Board of Directors of such company or
proprietor. The bond, wherever required, shall be furnished on non-judicial stamp paper of the value as applicable in
the
State in which the bond
is being furnished.
(d) Documents for LUT: Self-declaration to the effect that the conditions of LUT have been
fulfilled shall be accepted unless
there is specific information otherwise. That is, self- declaration by the exporter to the effect that he has not been prosecuted should suffice for
(e) Time for acceptance of LUT/Bond: Time for acceptance of LUT/Bond: As LUT/Bond is a priori requirement for export,
including exports to a SEZ developer or a SEZ unit, the LUT/bond should be processed on top most
The full details can be read and downloaded from here:
Posted on 22/11/2017 at 11:08 PM
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