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 ..... cation No. 37/2017 - Central Tax dated 4 th October, 2017 has been issued 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. 162017 - Central Tax dated 7 th July, 2017 except as respects things done or omitted to be done before such supersession. 2. In the light of the new notification, three circulars in this matter, namely Circular No. 2/2017 - GST dated 5 th July, 2017, Circular No. 4/4/2017 - GST dated 7th July, 2017 and Circular No. 5/5/2017 - GST dated 11 th August, 2017, which were issued for providin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er LUT will be deemed to have been withdrawn. If the amount mentioned in 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 As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or under bond with bank guarantee. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) Clarification regarding running 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 fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is invited to para A (v) Part- I of RBI Master Circular No. 14/2015-16 dated 01 St July, 2015 (updated as on 05 th 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 he realized in rupees, provided it is through a freely convertible Vostro account of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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