Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports

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....Central Tax dated 4th October, 2017 has been issued by the Government of India extending the facility of LUT to all exporters under rule 96A of the Central Goods and Services Tax Rules, 2017, applicable under rule 96A of the Karnataka Goods and Services Tax Rules, 2017 (hereafter referred to as "the KGST Rules") subject to certain conditions and safeguards which have to be followed by the State Tax officers administering the cases of such exporters. 2. In the light of the new notification, a consolidated circular on this matter is warranted. Accordingly, to ensure uniformity in the procedure in this regard, in exercise of powers conferred under section 168 (1) of the Karnataka Goods and Services Tax Act, 2017 the following issues....

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....submitted to the jurisdictional office for acceptance of LUT. e) Time for acceptance of LUT/Bond: An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017Central Tax, then the exporter's LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected ab initio. 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 cas....

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....n without payment of tax under the GST regime. The transaction between a taxable person and a merchant exporter is in the nature of supply and the same would be subject to GST. j) Transactions with EOUs: Zero rating 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 StJuly, 2015 (updated as on 05th November, 2015), which states that "there is no restriction on invoicing of export contract....