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TMI BlogClarification on issues related to furnishing of Bond/Letter of Undertaking for exports.X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 has been issued which extends the facility of LUT to all exporters under rule 96A of the Central Goods and Services Tax Rules, 2017 (hereafter referred to as the CGST Rules ) subject to certain conditions and safeguards. This notification has been issued in supersession of Notification No. 16/2017-Central Tax dated 7th July, 2017 except as respects things done or omitted to be done before such supersession. 2. GST Circular No. 01/2017 dated 14th July, 2017, was issued for providing clarity on the procedure to be followed for export under bond/LUT. The functionality to submit the LUT, online in Form GST RFD-11 , on the common portal has been provided to taxpayers from 24th February, 2018. In view of the developments in this regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the said sub-rule is paid subsequently, the facility of export under LUT shall be restored. As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or under bond with bank guarantee. c) Form for LUT: The registered person (exporters) shall fill and submit FORM GST RFD-11 on the common portal. An LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. d) Documents for LUT: No document needs to be physically submitted to the jurisdictional office for acceptance of LUT. e) Acceptance of LUT/bond: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lization of export proceeds in Indian Rupee: Attention is invited to para A (v) Part-I of RBI Master Circular No. 14/2015-16 dated 01 st July, 2015 (updated as on 05 th November, 2015), which states that there is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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