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 ..... Circular No. 8/8/2017-GST issued by the Central Board of Excise Customs vide F. No. 349/74/2017-GST(Pt.) Volt-Il-dated 4th October, 2017 on the subject above which is as under; 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 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. 16/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the preceding financial year which was not less than Rs. 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 CGST Rules and the registered person fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn. If the amount mentioned in the said sub-rule is paid subsequently, the 'facility oft 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 As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 be accepted. f) Bank guarantee: Since the facility of export under LUT has been extended to all registered persons, bond will be required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees two hundred and fifty lakhs. A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount. g) Clarificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to GST. J) Transactions with EOUs: Zero Fating 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 eligible for zero rating like any other exporter. k) Realization of export proceeds in Indian Rupee: Attention is invited to para A (v) Part-I of RBI Master Circular No. 14/2015-16 dated 01 St July, 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, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is at liberty to furnish the LUT/bond before either, the Central Tax Authority or. :the State Tax Authority till the administrative mechanism for assigning of taxpayers to the respective authority is implemented. 3. Circular No. 2/2/2017 - GST dated 5th July, 2017, Circular No. 4/4/2017 GST dated 7th July, 2017 and Circular No. 5/5/2017 - GST dated 11th August, 2017 are hereby rescinded except as respects things already done or omitted to be done. 4. All the Trade Associations/Chambers of Commerce and Members of RAC/PGRC are requested to publicize the contents of this Public/Trade Notice amongst their Members/constituents, for information and necessary action. Commissioner - Circular - Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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