TMI BlogDelegation of power for acceptance of Bond/Letter of Undertaking (LUT) for exports without payment of integrated tax.X X X X Extracts X X X X X X X X Extracts X X X X ..... ace outside India. Provisions of integrated GST Law, under section 7(5), define exports and, supplies to or by a Special Economic Zone Developer or Special Economic Zone Unit as inter-state supplies. Therefore, these supplies shall be governed by the provisions of Integrated GST Law. The provisions of section 16 of Integrated GST provide that export of goods and services or both shall be zero rated. Similarly, a supply of goods and services or both to a special economy zone developer or a special economic zone unit is also a zero rated supply. A credit of input tax is availed of by the suppliers for making zero rated supplies including the supplies that may be exempted subject to negative list for credit of input tax provided under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portal a confirmation that the goods covered by the said invoice have been exported out of India. The procedure for furnishing Bond/LUT has been laid down in rule 96(A) of the Haryana Goods and Services Tax Rules, 2017. The rules require that an exporter opting to supply goods or services or both for export without payment of integrated tax shall furnish, prior to export, a Bond/LUT in FORM GST RFD-11 to jurisdictional Commissioner binding him to pay tax along with applicable interest within a period of 15 days after the expiry of three months from the issue of invoice for export if the goods are not exported out of India; or 15 days from the expiry of one year from date of issue of invoice for export if the payment of such supply of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange. (c) For deemed export, FOR value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year. (d) For granting status, export performance is necessary in at least two out of three years. 3.21 Status Category Status Category Export Performance FOB / FOR (as converted) Value(in US $ million) One Star Export House 3 Two Star Export House 25 Three Star Export House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax liability. In case the bond amount is insufficient to cover the tax liability, the exporter shall furnish a fresh bond to cover such liability. The supplies of export are governed by the provisions of Integrated GST Tax Law which is an Act of Parliament. The provisions of section 4 of IGST Law empowered officers appointed under State Goods and Services Tax Act to exercise the powers under the IGST Act. Therefore, an exporter is at liability to furnish a Bond/LUT before Centre Tax Authority or State Tax Authority. The bond/LUT may be accepted by any Of the departments till the task or assigning tax payers to the respective authorities is completed. The powers of Commissioner having been delegated, the Bond/LUT may be accepted by j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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