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

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....vices or both without payment of integrated tax, Chief Commissioner's proceedings in Ref. CCW/GST/74/2015-1, Dt. 04.10.2017 {corresponding 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 Andhra Pradesh Goods and Services Tax Rules, 2017 (hereafter referred to as "the APGST Rules") subject to certain conditions and safeguards. This notification has been issued in supersession of CCTs Ref. in CCW/74/2015, Dated:12-07-2017 {corresponding 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 the light of the new notification, various circulars ....

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....g 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 APGST 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fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn.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 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 As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or un....

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....p 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) Clarification regarding running bond: The exporter....

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....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 01st 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, 1999. Further, in terms of Para 2.52 of the Foreign Trade Policy (201....