CBEC has issued various clarifications/ circulars, from time to time, on furnishing of Bond/ Letter of Undertaking (LUT) by the Exporters for Exports without payment of IGST and also has laid down conditions for uniformity of procedures related thereto, as under:
CBEC Clarifications on Furnishing Bond/ LUT (#3)
CBEC has further Clarified about procedural issues for online Furnishing of Bond/ Letter of Undertaking (LUT) in Form GST RFD-11 for Exports. The LUT will be deemed to be accepted as soon as ARN is generated. It may be considered as a big relief for exporters, as no document is required to be physically submitted to the jurisdictional office henceforth.
CBIC GST Circular 40/14/2018 dt. 06/04/2018: Clarifications on Furnishing of Bond/ LUT for Exports
CBEC Clarifications on 13 issues of IGST Refund relating to Exports
The CBEC has issued Clarifications on 13 issues relating to processing of refund refund claims under IGST pertaining to Exports, including on issues like, non-availment of drawback, amendment thru Table 9 of GSTR-1, exports without LUT, refund of transitional credit, etc. as under:
CBEC GST Circular 37/11/2018 dt. 15/03/2018: Clarifications on IGST Refund issues relating to Exports
Major Relief Package under GST for Exporters: CBEC
GST Council, in its 22nd Meeting on 06/10/2017, has recommended a major relief package for exporters under GST, which includes allowing immediate refunds of IGST and input taxes paid on exports, no IGST on imports by holders of Advance Authorisation, EPCG and EOUs, Merchant exporters can buy goods for exports by paying 0.1% IGST, e-wallet facility from 01/04/2018, etc. The details of such relief package are as under:
CBEC Press Release dt. 06/10/2017: Relief Package for Exporters Announced by GST Council
CBEC Clarifications on Furnishing Bond/ LUT (#2)
The CBEC has issued Master Circular for Clarifications/ Uniformity on procedural issues/ safeguards relating to Furnishing of Bond/ Letter of Undertaking for Exports, like Eligibility for making exports under LUT, Validity and Form of LUT, Documentation and Timing for submission of LUT, Purchases from Manufactures (Form CT-1) by Exporters, Transactions with EOUs, Realisation of Proceeds in INR, Submission of Bond/ BG/ Running Bond, Jurisdictional Officer, etc.
CBEC GST Circular 8/8/2017 dt. 04/10/2017: Clarifications on Furnishing of Bond/ LUT for Exports
All Registered Taxpayers (Exporters) can Furnish Letter of Undertaking (LUT) in lieu of Bond/ Bank Guarantee (BG) under IGST for making Exports/ Supplies to SEZ
The CBEC has notified that all registered persons/ taxpayers under GST (Exporters) are eligible to make supply of goods or services under exports or to SEZs, without payment of integrated tax (IGST) by just furnishing Letter of Undertaking (LUT) in lieu of Bond/ Bank Guarantee (BG), as prescribed earlier, subject to certain specified conditions and safeguards, as under:
A. Specified Conditions/ Safeguards for furnishing LUT to make Exports without Payment of IGST:
CBEC Central Tax Notification 37/2017 dt. 04/10/2017: LUT in lieu of Bond/ BG for Exports/ SEZ Supplies
B. Facility of furnishing Letter of Undertaking in lieu of Bond/ BG Extended by Govt. to more Exporters to meet requirements of IGST
CBEC Press Release dt. 29/09/2017
CBEC Clarifications on Furnishing Bond/ LUT (#1)
Various communications have been received from the field formations and exporters that difficulties are being faced in complying with the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds/ Letter of Undertaking.
The CBEC has clarified various issues related to Bond/ Letter of Undertaking for exports without payment of integrated tax under GST regime, as under:
CBEC GST Circular 4/4/2017 dt. 07/07/2017: Clarifications on Furnishing of Bond/ LUT for Exports
Rescinded or Superseded Notifications/ Circulars on the Subject
i) Clarifications on Bond/ LUT for Exports: CBEC GST Circular 5/5/2017 dt. 11/08/2017
Note: CBEC GST Circular 5/5/2017 dt. 11/08/2017 rescinded by CBEC GST Circular 8/8/2017 dt. 04/10/2017.
Note: CBEC Central Tax Notification 16/2017 dt. 07/07/2017 superseded by CBEC Central Tax Notification 37/2017 dt. 04/10/2017.
iii) CBEC GST Circular 2/2/2017 dt. 04/07/2017: Clarifications on Furnishing of Bond/ LUT for Exports
Note: CBEC GST Circular 2/2/2017 dt. 07/07/2017 rescinded by CBEC GST Circular 8/8/2017 dt. 04/10/2017.