Clarification/Guidelines regarding submission of Bond/Letter of Undertaking (LUT) by the Exporters in respect of Exports without payment of Integrated Tax under WBGST/ CGST Rule 96A.

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.... Act, 2017; (c) West Bengal Goods and Services Tax Rules, 2017; (d) Notification No. 16/2017 dated 07.07.2017 of Department of Revenue (Central Board of Excise & Customs), Ministry of Finance, Government of India; (e) Circular No.4/4/2017-GST of Commissioner of GST (Central Board of Excise & Customs) A number of queries have been received from the Trade Associations and Exporters regarding procedure to be followed for export of goods and services under the GST regime. This issue is examined in detail. (1) Section 16(3) of the IGST Act, 2017 provides that a registered person making 'Zero Rated' supply is eligible to claim refund of unutilised input tax credit in case he supplies goods or services or both under bond or Letter of Undertak....

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....issue Notification and specify certain conditions and safe-guards under which an exporter may furnish LUT in place of Bond. (4) In view of this, attention of Trade Associations, exporters is invited to the following procedure [cited as Ref. (d) & (e) on Page 1] that is required to be followed while furnishing of Bond or LUT: (a) the following registered persons shall be eligible for submission of LUT in Form GST RFD-11 in place of Bond: [i] A status holder as specified in the Foreign Trade Policy 2015-20 (relevant portion is annexed herewith); or [ii] Who has received the due Foreign Inward Remittances amounting to a minimum of 10% of the Export Turnover, which should not be less than 1 crore rupees the in preceding financial year, a....

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....nted out here that the Commissioner may decide on the amount of Bank Guarantee not exceeding 15% of the Bond amount, depending upon the track record of the exporter. However, if the Commissioner is satisfied with the track record of an exporter, he may dispense with this requirement of furnishing of bank guarantee with bond. (f) As regards LUT, it is also clarified that the LUT shall be valid for a period of twelve months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond. (g) Further, in exercise of the powers conferred by section 168 of the West Bengal Goods and Services Tax Ordinance, 2017, for the purpose of uniformity in the implementation of the said Ordinance, the Bond or the LUT requi....

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.... Bengal Memo. No. 677 CT/PRO 3C/PRO/2015 Date: 19.07.2017 ANNEXURE: 3.20 Status Holder; (a) Status Holders are business leaders who have excelled in international trade and have successfully contributed to country's foreign trade. Status Holders are expected to not only contribute towards India's exports but also provide guidance and handholding to new entrepreneurs. (b) All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in paragraph 3.21 of F....

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....t liberty to get the payment from the bank against the bank guarantee. (iii) The department will be at liberty to invoke the bank guarantee provided by us to cover the amount of integrated tax payable in respect of export of goods or services. Signature of Authorized Signatory Date: Place: Name............................................ Designation/ Status...................... Bond for export of goods or services without payment of integrated tax (See rule 96A) I/We..................................................... of........................................................... hereinafter called "obligor(s)", am/are held and firmly bound to the President of India (hereinafter called "the President") in the ....

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....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 endorsing his rights under the above-written bond or both; I/We further declare that this bond is given under the orders of the Government for the performance of an act in which the public are interested; IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the obligor(s). Date: Place: Signature(s) of obligor(s) Witnesses (1) Name and Address Occupation (2) Name and Address Occupation Accepted by me this .................................... day of .................... (month) ......