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TMI BlogSUB : Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports –reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of bonds/Letter of Undertaking (LUT for short) for exporting goods or services or both without payment of integrated tax, three circulars in this matter, namely Circular No. 2/2/2017 GST dated 5th July, 2017, Circular No. 4/4/2017 GST dated 7th July, 2017 and Circular No. 5/5/2017 GST dated 11th August, 2017 were issued by Board for providing clarity on the procedure to be followed for export under bond/LUT. It has been observed that the procedure requires revision and a consolidated circular on this matter is warranted. Accordingly, to ensure uniformity in the procedure in this regard, the Board has clarified the following issues: a) Eligibility to export under LUT: The facility of export under LUT has been now extended to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on portal, the registered person (exporters) may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business. The LUT shall be furnished on the letter head of the registered person, in duplicate, and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor. The bond, wherever required, shall be furnished on non-judicial stamp paper of the value as applicable in the State in which the bond is bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure that the outstanding integrated tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the said liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability. The onus of maintaining the debit / credit entries of integrated tax in the running bond will lie with the exporter. The record of such entries shall be furnished to the Central tax officer as and when required. h) Sealing by officers: Till mandatory self-sealing is operationalized, sealing of containers, wherever required to be carried out under the supervision of the officer, shall be done under the supervision of the central excise officer having jurisdiction over the place of busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tible 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 has been clarified that the acceptance of LUT 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 currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SEZ developer or SEZ unit under LUT will also be permissible on the same lines. The supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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