9911796707
TMI BlogSubmission of Bond/ Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under IGST Act.X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the provisional ID for the GST is issued by the State GST Department), will be accepted by the jurisdictional Central Tax officer till the administrative mechanism for assigning of Tarpapers to respective authority is implemented. 1.3. Now, the order of the distribution of cases has already been issued vide Order No. 1/2017-GST/Maharashtra dated 22nd November 2017. Accordingly, the tax payers in the Maharashtra State have been assigned to the State Tax Authority and the Central Tax Authority. 1.4. The list of such cases with the Nodal Officer-wise allocation under the jurisdiction of the State Tax Authority is made available at what's new section of the MGSTD web-site wrww.mahavat.gv.in. 1.5. In view of this the earlier instructions issued vide Trade Circular No. 29T of 2017 dated the 10th July 2017 reproduced in Para-1.2 above stands withdrawn forthwith. 2. Option to Export Goods or Services or both under Bond/ LUT without payment of Integrated tax: 2.1. Sub-section (1) of section 16 of the IGST Act provides that following supplies shall be "Zero-rated"- 2.1.1. export of goods or services or both; or 2.1.2. supply of goods or services or both to a Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght of the new Notification No. 37/2017 State tax dated 7th October, 2017 and division of the tax payers between State Tax Authority and the Central Tax Authority, it has become imperative to issue guidelines for providing clarity on the procedure to be followed for export under bond/ LUT. Accordingly, to ensure uniformity in the procedure in this regard, the undersigned, in exercise of its powers conferred under section 168 (1) of the Maharashtra Goods and Services Tax Act, 2017 clarifies the following issues: 3.1. Eligibility to export under LUT: 3.1.1. 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 MGST 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 ₹ 2.5 Cr. 3.1.2. The conditions mentioned in the Finance Department Notification No. MGST-1017/C.R.-111/ Taxation.-1 dated 11th July 2017 (Notification No. 16/2017 State tax) which extended the facility of export under LUT to a status holder as specified in para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 3.4. Form for bond/LUT: 3.4.1. Till the time FORM-GST-RFD-11 is made available on the common portal, the registered person (exporters) may use the FORM-GST-RFD-11 annexed to this Trade Circular as ANNEXURE-A, or may be downloaded from the website of the MGSTD i.e. www.mahavat.gov.in>Act and Rules Notification>Mah. GST Act.-2017> Notification>2017 i.e. Notification No. 15/2017 State tax dated 4th July 2017. 3.4.2. The FORM-GST-RFD-011 duly filled and appropriately signed shall be submitted to the Nodal Officer having jurisdiction over principal place of business of the said tax payer. 3.4. 3.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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15-16 dated 01StJuly, 2015 (updated as on 05th November, 2015), which states that "there is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act, 1999. Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020), all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan". 3.9.2. Accordingly, it is clarified that the acceptance of LUT for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SDZ developer or SEZ unit unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gor desires to export goods or services in accordance with the provisions of clause (a) of subsection (3) of section 16; AND WHEREAS the Commissioner has required the obligor to furnish bank guarantee for an amount of............................................ rupees endorsed in favour of the President and whereas the obligor has furnished such guarantee by depositing with the Commissioner the bank guarantee as afore mentioned; The condition of this bond is that the obligor and his representative observe all the provisions of the Act in respect of export of goods or services, and rules made thereunder; AND if the relevant and specific goods 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 end ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
