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TMI BlogFurther clarification to Circular No. 1/2017 - GST dated 21st July, 2017.X X X X Extracts X X X X X X X X Extracts X X X X ..... larified hereunder: (a) Eligibility to export under LUT: Notification No. 16/2017 - Central tax dated 7th July, 2017 issued by CBEC specifies conditions to be fulfilled for export under Letter of Undertaking (LUT) in place of bond. It is hereby clarified that any registered person who has received a minimum foreign inward remittance of 10% of export turnover in the preceding financial year is eligible for availing the facility of LUT provided that the amount received as foreign inward remittance is not less than Rs. one crore. This means that only such exporters are eligible to LUT facilities who have received a remittance of Rs. one crore or 10% of export turnover, whichever is a higher amount, in the previous financial year. A few il ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfies the above conditions. For Status holder refer to annexure of Circular No. 1/2017 - GST dated 21st July, 2017. (b) Form for LUT: Bonds are furnished on non-judicial stamp paper, while LUTs are generally submitted on the letterhead containing signature and seal of the person or the person authorized in this behalf as provided in said Circular. (b) Time for acceptance of LUT/Bond: As LUT/bond is a priori requirement for export, including supplies to a SEZ developer or a SEZ unit, the LUT/bond should be processed on top most priority and should be accepted within a period of three working days from the date of submission of LUT/bond along with complete documents by the exporter. (c) Purchases from manufacturer and form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 1999. Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020), all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan Accordingly, it is clarified that acceptance of LUT instead of a bond for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign inward remittances in respect of 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 may be 10% or more of total export turnover. In such cases, the registered person can be allowed to submit bond without bank guarantee. (h) Jurisdictional officer: It has been clarified in Circular No. 1/2017 - GST dated 21 st July, 2017 that Bond/LUT shall be accepted by the jurisdictional Assistant Commissioner of State tax / Superintendent of State tax having jurisdiction over the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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