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TMI BlogSubject: Issues related to Bond/letter of Undertaking for exports without payment of integrated tax - Reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds/ Letter of Undertaking. Therefore, in exercise of powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, these issues are being clarified hereunder. 3. As per rule 96A of the Central Goods and Services Tax Rules, 2017 ( The CGST Rules), any registered person exporting goods or services without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11. 4. Thus, in exercise of the powers conferred by sub-section (3) of section 5 of the CGST Act, 2017, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nning bond (with debit / credit facility ) or a one-time bond (separate bond for each consignment / export). It is observed consignment wise bond would be a significant. compliance burden on the exporters. It is directed that the exporters shall furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter shall ensure that 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. 8. FORM RED -11 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted. Central Tax officers are directed to take every step to facilitate the exporters. 11. Attention is further invited to circular No. 26/2017 - Customs dated 1st July 2017, vide which it has been clarified that the existing practice of sealing the container with a bottle seal Page 3 of 3 under Central Excise supervision or otherwise would continue till 01st September, 2017. Such sealing shall be done under the supervision of the officer having physical jurisdiction over the place of business where the sealing is being done. A copy of the sealing report would be forwarded to the Deputy/Assistant Commissioner having jurisdiction over the principal place of business. 12. These instructions shall apply to exports on or after lst July, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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