TMI BlogClarification on issues related to furnishing of Bond/Letter of Undertaking for exportsX X X X Extracts X X X X X X X X Extracts X X X X ..... y of Finance, Government of India; (e) Circular No. 4/4/2017-GST of Commissioner of GST (Central Board of Excise Customs) (f) Circular No. 5/5/2017-GST of Commissioner of GST (Central Board of Excise Customs) (g) Circular No. 8/8/2017-GST of Commissioner of GST (Central Board of Excise Customs) (g) Trade Circular No. 07/2017 dated 19/07/2017, and addendum to Trade Circular No. 07/2017 dated 28/08/2017, issued by the Commissioner of State Tax, West Bengal, are relevant in this regard. 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 4t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h rupees unlike Trade Circular No. 07/2017 dated 19/07/2017, and addendum to Trade Circular No. 07/2017 dated 28/08/2017 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 Rupees 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 WBGST Rules and the registered person fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion otherwise. That is, self-declaration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of Notification No.37/2017- Central Tax dated 4th October, 2017. Verification, if any, may be done on post-facto basis. e) 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 priority. It is clarified that LUT/bond should be accepted within a period of three working days of its receipt along with the self-declaration as stated in para 2(d) above by the exporter. If the LUT / bond is not accepted within a period of three working days from the date of submission, it shall deemed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow the rank of Assistant Commissioner of State Tax, from 16/10/2017 having jurisdiction over the principal place of business. i) Purchases from manufacturer and Form CT-1: It is clarified that there is no provision for issuance of CT-1 form which enables merchant exporters to purchase goods from a manufacturer without payment of tax under the GST regime. The transaction between a manufacturer and a merchant exporter is in the nature of supply and the same would be subject to GST. j) Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for them under GST regime. Therefore, supplies to EOUs are taxable like any other taxable supplies. EOUs, to the extent of exports, are eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of services only if the payment for such services is received by the supplier in convertible foreign exchange. l) Jurisdictional officer: In exercise of the powers conferred by sub-section (3) of section 5 of the WBGST Act, it is hereby stated that the LUT/Bond shall be accepted by the jurisdictional officer not below the rank of State Tax Officer upto 15/10/2017 or not below the rank of Assistant Commissioner of State Tax, from 16/10/2017 having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the LUT/bond before either the State Tax Authority or the Central Tax Authority till the administrative mechanism for assigning of taxpayers to the respective authority is implemented. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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