GST - Waiver from Bank Guarantee on executing Bond - GST - GST TRADE NOTICE NO. 14/2017

GOVERNMENT OF INDIA: MINISTRY OF FINANCE : DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF GST AND CENTRAL EXCISE, PUDUCHERRY GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001 C. No. IV/16/86/2017- GST Dated: 14-08-2017 GST TRADE NOTICE NO. 14/2017 Sub: GST - Waiver from Bank Guarantee on executing Bond - Reg. Reference is invited to Para 5 of the Circular No.4/4/2017 GST dated 07.07.2017 wherein it has been clarified that Form RFD -11 under Rule 96A of the CGST Rules requires furnishing of bank guarantee with bond. Field formations have requested for clarity on the amount of bank guarantee as a security for the bond. In this regard it is directed that the jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the track record of the exporter. If, Commissioner 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 1500 of the bond amount. 2. In pursuance of the above clarification made by the CBEC(GST Policy Wing) and in order to alleviate the compliance burden of exporters on account of the need to approach the undersigned seeking waiver of a bank guarantee while furnishing a bond, in exercise of the power conferred by sub-section (3) of Section (5) of the Central Goods and Service Tax Act, 2017 (12 of 2017), the undersigned hereby delegates the power to waive the bank guarantee to Jurisdictional Deputy or Assistant Commissioners, as the case may be, of the GST Central Excise Divisions in all cases of supply of goods or services for export except the following: a) Exporter has been prosecuted, or under prosecution, for tax evasion of any kind and amount under any law, past or present b) Fresh registrant under GST and not eligible to furnish LUT c) Exporter has come to the adverse notice of the department for not fulfilling or not adhering to bond conditions in the earlier regime d) Exporter has collected tax or duty from customers in case of domestic supplies but not deposited with the exchequer on or before the due date e) Exporter has defaulted in filing returns for two consecutive months in case of Central Excise and the last six-monthly return in case of Service Tax f) Exporter has defaulted in payment of arrears of revenue even though no appeal for the disputed amount is pending or the dispute has attained finality 3. A self-declaration that the exporter does not fall under any of the aforementioned categories in the enclosed format shall be obtained while accepting a bond without a bank guarantee. 4. Any difficulties in enforcing these instructions may be brought to the notice of the undersigned instantly for quick remedy. (U. NIRANJAN) COMMISSIONER