Issue related to Bond/Letter of Undertaking for exports without payment of integrated tax. - GST - States - GST Circular No. 01/ 2017

Government of Rajasthan Commercial Taxes Department, No. F.17(134)ACCT/GST/2017/2242 Dated-14.07.2017 GST Circular No. 01/ 2017 To, All Joint Commissioner (Adm.), Commercial Taxes Department, .. Sub.:- Issue related to Bond/Letter of Undertaking for exports without payment of integrated tax. Ref:- Notification no. 16/2017 - Central Tax dated 07-07-2017, Circular no. 2/2/2017 - GST dated 04-07-2017 and Circular no. 4/4/2017 GST dated 07-07-2017 (enclosed). Various communications have been received from the officers and exporters on the issue of difficulties faced while supplying goods or services for export without payment of integrated tax and filing the FORM GST RFD-11 . Therefore, in exercise of powers conferred under section 168 of the Rajasthan Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation Of the Act, following directions are issued. As per rule 96A of the Rajasthan Goods and Service Tax Rules, 2017 any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking. This bond or Letter of Undertaking is required to be furnished in FORM GST RFD-11. The Central Board of Excise and Customs has issued Notification No. 16/2017-Central Tax under sub-rule (5) of rule 96A to notify eligible registered person for submission of letter of undertaking in place of a Bond. The FORM GST RFD-11 will be required to be submitted on the common portal but the functionality has not been made operational yet. Therefore, the Bond/Letter of Undertaking required to be furnished under rule 96A of the said rules may be furnished manually to the jurisdictional Deputy/Assistant Commissioner in the format specified in FORM GST RFD-11 till the module for furnishing of FORM GST RFD-11 is available on the common portal. This has been also clarified vide Circular No. 2/2/2017-GST issued by the GST policy wing of Central Board of Excise and Customs. Further, Circular number 4/4/2017-GST dated 7th July, 2017 has been also issued by the GST policy wing of Central Board of Excise and Customs, wherein the procedure to accept the Bond/LUT has been provided. The Bond/LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the Bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. Thus, it is directed that all the jurisdictional Deputy/Assistant Commissioner of State Tax having jurisdiction over the principal place of business of the exporter shall accept the FORM GST RFD-11 along with bond/ Letter of Undertaking. FORM GST RFD -11 under rule 96A of the Rajasthan Goods and Services Tax Rules, 2017 requires furnishing a bank guarantee with bond. In this regard it is directed that the jurisdictional Joint Commissioner (Adm.) may decide about the amount of bank guarantee depending upon the track record of the exporter. If Joint Commissioner (Adm.) is satisfied with the track record of an exporter then furnishing of bond without bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15% of the bond amount. It is further directed that proper record of all such FORM GST RFD-11 along with bond/ Letter of Undertaking shall be maintained at the office level. Format of bounded register to be maintained in this regard and acknowledgement to be issued is enclosed to maintain uniformity. All Joint Commissioner (Adm.) shall ensure compliance of these directions and make aware the business community in this regard. (Alok Gupta) Commissioner State Tax, Rajasthan, Jaipur. No. F.17(134 )ACCT/GST/ 2017/2242-48 Date- 14.07.2017 Format of Register of Bond/LUT: S.No. Form GST RFD-11 receiving date Name and Address of the taxpayer GSTIN Bond/LUT Bond Amount Bank Guarantee amount and date Bank Guarantee issued by Validity date of bank guarantee Bond/LUT valid upto Remarks 1 2 3 4 5 6 7 8 9 10 11 Format of Acknowledgement letter to be issued: F.No Date: To, M/S .. GSTIN............................... Subject: Acceptance of Bond/ LUT for export. It is to inform you that Bond/ Letter of Undertaking submitted by you has been accepted by this office on ..for supply of Goods/Services for export without payment of Integrated Tax under Rule 96A of Rajasthan Goods and Service Tax Rules, 2017. The aforesaid Bond/Letter of Undertaking is valid for 12 months i.e. upto date..........................The same has been entered at serial number ..in the register maintained in the Circle. You are further directed to submit the details of Goods exported and supporting documents of export in this regard within the time limit prescribed in sub-rule (1) of rule 96A of Rajasthan Goods and Service Rules, 2017. Signature of the Designated Authority Accepting the Bond/ LUT with seal