Issues related to acceptance of Bond/LUT - GST - States - F. No. AC/Export Cell/W-208/2017-18/848-877

Office of the Special Commissioner (GST) Export/KCS Branch, Department of Trade Taxes Govt. of NCT of Delhi 8 th Floor, Vyapar Bhawan, I.P. Estate, New Delhi-110002 F. No. AC/Export Cell/W-208/2017-18/848-877 Dated 07/09/2017 Circular Subject- Issues related to acceptance of Bond/LUT Ref :- Circular No. 5/5/2017-GST dated 11-08-2017 issued by Ministry of finance, department of revenue, Central Board of Excise and customs, GST Policy wing. In continuation of earlier circular F. No AC/Export Cell/W-208/2017-18 dated 02.08.2017 , in order to further liberalise the acceptance of LUT/Bond the following directions are being issued: 1. Acceptance of LUT is permissible in case of a SEZ developer/SEZ unit. However, the rest of the conditions for issue of LUT will remain the same. 2. Supply of services to Nepal or Bhutan will be deemed to be export of services only if the payment to such services is received by the supplier in convertible foreign exchange 3. An exporter registered with recognised Export Promotion Council is allowed to submit Bond without bank guarantee on submission of a self attested copy of the proof of registration with a recognised Export Promotion Council. 4. In the GST regime, registration is State-wise which means that the expression 'registered person' used in the said notification may mean different registered persons. If a person having one Permanent Account Number is registered in more than one State it may so happen that a registered person may not satisfy the condition regarding foreign inward remittances in respect one particular registration, because Of splitting and accountal of receipts and turnover across different registered person with the same PAN. But the total amount of inward foreign remittances received by all the registered persons, having one Permanent Account Number, may be ₹ 1 crore or more and it also maybe or more of total export turnover. In such cases, the registered person can be allowed to submit bond without bank guarantee. 5. It is henceforth decided that the dealers applying for LUT/Bond will submit a CA certificate in support of their export/SEZ turnover of their export/SEZ turnover of 2016-17 in place of DVAT-16 /Returns. This issues with the prior approval of the competent authority. (Kapil Singh) Spl. Commissioner (GST) Nodal Officer (Export Cell)