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TMI BlogGST- Submission of Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act — Further Clarification- Issued.X X X X Extracts X X X X X X X X Extracts X X X X ..... orters 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 4th October, 2017 has been issued which extends the facility of LUT to all exporters under rule 96A of the Central Goods and Services Tax Rules, 2017 (hereafter referred to as "the CGST Rules") subject to certain conditions and safeguards. This notification has been issued in supersession of Notification No. 16/2017-Central Tax dated 7th July, 2017 except as respects things done or omitted to be done before such supersession. 2. In order to ensure uniformity in the procedure in this regard, the Commissioner of State Tax, in exercise of its powers conferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same is restored, shall be either on payment of the applicable integrated tax or under bond with bank guarantee. c) Form for bond/LUT: Till the time FORM GST RFD-11 is available on the common portal, the registered person (exporters) may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing bond: The exporters shall furnish a running bond where the bond amount would cover the amount of self-assessed estimated tax liability on the export. The exporter shall ensure that the outstanding integrated tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the said liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability. The onus of maintaining the debit / credit entries of integrated tax in the running bond will lie with the exporter. The record of such entries shall be furnished to the Central Tax Officer as and when required. h) Sealing by officers: Till mandatory self-sealing is operationalized, sealing of containers, wherever requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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" 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 guide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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