CBEC Clarifications on Furnishing of Bond/ LUT for Exports without IGST Payment

CBEC Clarifications on Furnishing of Bond/ Letter of Undertaking (LUT) for Exports without IGST Payment

The 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.

Clarifications on Furnishing of Bond/ LUT for Exports: CBIC (CBEC) Circular No. 40/14/2018 dt. 6 April, 2018

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:

Clarifications on IGST Refund issues relating to Exports: CBEC Circular No. 37/11/2018 GST dt. 15 March 2018 

Major Relief Package under GST for Exporters: CBEC

GST Council, in its 22nd Meeting on 6 Oct. 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 1 April, 2018, etc. The details of such relief package are as under:

Relief Package for Exporters Announced by GST Council: CBEC Press Release dt. 6 Oct. 2017

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.

Clarifications on Furnishing of Bond/ LUT for Exports: CBEC Circular No. 8/8/2017 dt. 4 Oct. 2017

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 Notification

LUT in lieu of Bond/ BG for Exports/ SEZ Supplies: CBEC Notification 37/2017 Central Tax 4 Oct.

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 Sept. 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:

Clarifications on Furnishing of Bond/ LUT for Exports: CBEC Circular No. 4/4/2017 dt. 7 Jul. 2017

Rescinded or Superseded Notifications/ Circulars on the Subject

i) Clarifications on Bond/ LUT for Exports: CBEC Circular No. 5/5/2017 (GST Policy) dt. 11 Aug. 2017

CBEC Circular No. 5/5/2017 Central Tax dt. 11 Aug. 2017 rescinded by CBEC Circular No. 8/8/2017 Central Tax dt. 4 Oct. 2017.

ii) Conditions for Sale of Goods/ Services for Export without Payment of Integrated Tax: CBEC Notification 16/2017 Central Tax dt. 7 July 2017 and Corrigendum dt. 10 July 2017 to CBEC Notification 16/2017 Central Tax dt. 7 July 2017

CBEC Notification No. 16/2017 Central Tax dt. 7 July 2017 superseded by CBEC Notification No. 37/2017 Central Tax dt. 4 Oct. 2017.

iii) CBEC Clarifications on Furnishing of Bond/ LUT for Exports: GST Circular 2/2/2017 dt. 4 July 2017

CBEC Circular No. 2/2/2017 Central Tax dt. 7 July 2017 rescinded by CBEC Circular No. 8/8/2017 Central Tax dt. 4 Oct. 2017.

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