TMI BlogFurnishing of LUT or bonds for exports and guidelines thereof.X X X X Extracts X X X X X X X X Extracts X X X X ..... im refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act, 2017 and the rules made there under. 2. In accordance with the provisions of Rule 96A of Assam Goods and Services Tax (Third Amendment) Rules, 2017 a registered person availing of the option of supplying goods or service for export without payment of Integrated Tax is required to furnish, prior to export, a Bond or a LUT in Form GST RFD-11 to the jurisdictional Commissioner binding himself to pay the tax due along with interest in terms of sub-section (1) of section 50 within a period of- (a) fifteen (15) days after the expiry of three months from the date of issue of Invoice for export, if the goods are not exported out of India; or (b) fifteen (15) days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of Invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. 3. In terms of provision of sub-rule (5) of the aforesaid rule 96A, the State Government is empowered to issue Notification and spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the outstanding tax liability on exports is within the Bond amount. In case the Bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter shall furnish a fresh Bond to cover such liability. (e) Further, FORM RFD-11 under rule 96A of the Assam Goods and Services Tax (Third Amendment) Rules, 2017 requires furnishing a bank guarantee with bond. It is pointed out here that the Commissioner may decide on the amount of Bank Guarantee not exceeding 15% of the Bond amount, depending upon the track record of the exporter. However, if the Commissioner is satisfied with the track record of an exporter, he may dispense with this requirement of furnishing of bank guarantee with bond. (f) As regards LUT, it is also clarified that the LUT shall be valid for a period of twelve months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond. (g) Further, in exercise of the powers conferred by section 168 of the Assam Goods and Services Tax, 2017, for the purpose of uniformity in the implementation of the said, the Bond or the LUT required to be furnished under rule 96A of the Assam Goods and Services Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st two out of three years. 3.21 Status Category: Status Category Export Performance FOB/FOR (as converted) Value (in US S million) One Star Export House 3 Two Star Export House 25 Three Star Export House 100 Four Star Export House 500 Five Star Export House 2000 [Extract from FOREIGN TRADE POLICY (1st April, 2015 - 31st March, 2020, Department of Commerce, Ministry of Commerce and Industry, Government of India] FORM GST RFD-11 [See rule 96A] Furnishing of bond or Letter of Undertaking for export of goods or services 1. GSTIN 2. Name 3. Indicate the type of document furnished Bond: Letter of Undertaking 4. Details of bond furnished Sr. No. Reference no. of the bank guarantee Date Amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or services are duly exported; AND if all dues of Integrated tax and all other lawful charges, are duly paid to the Government along with interest, if any, within fifteen days of the date of demand thereof being made in writing by the said officer, this obligation shall be void; OTHERWISE and on breach or failure in the performance of any part of this condition, the same shall be in full force and virtue: AND the President shall, at his option, be competent to make good all the loss and damages, from the amount of bank guarantee or by endorsing his rights under the above-written bond or both; I/We further declare that this bond is given under the orders of the Government for the performance of an act in which the public are interested; IN THE WITNESS THEREOF these presents have been signed the day herein before written by the obligor(s). Signature(s) of obligor(s). Date: Place: Witnesses (1) Name and Address Occupation (2) Name and Address Occupation Accepted by me this day of .(month) ..(year) .of ..(Designation) for and on behalf of the President of India. . Letter of Under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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