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TMI BlogClarification on issues related to furnishing of Bond/Letter of Undertaking for exportsX X X X Extracts X X X X X X X X Extracts X X X X ..... ndertaking (LUT for short) for exporting goods or services or both without payment of integrated tax, Notification No. 37/2017 - Central Tax dated 4th October, 2017 has been issued by the Government of India extending the facility of LUT to all exporters under rule 96A of the Central Goods and Services Tax Rules, 2017, applicable under rule 96A of the Karnataka Goods and Services Tax Rules, 2017 (hereafter referred to as the KGST Rules ) subject to certain conditions and safeguards which have to be followed by the State Tax officers administering the cases of such exporters. 2. In the light of the new notification, a consolidated circular on this matter is warranted. Accordingly, to ensure uniformity in the procedure in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted 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) Time for acceptance of LUT/Bond: An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017Central Tax, then the exporter's LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Officer having jurisdiction over the principal place of business. i) Purchases from another person and Form H: It is clarified that there is no provision for issuance of H form which enables merchant exporters to purchase goods from another person without payment of tax under the GST regime. The transaction between a taxable person and a merchant exporter is in the nature of supply and the same would be subject to GST. j) Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for them under GST regime. Therefore, supplies to EOUs are taxable like any other taxable supplies. EOUs, to the extent of exports, are eligible for zero rating like any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jurisdictional officer: In exercise of the powers conferred by sub-section (3) of section 5 of the KGST Act, it is hereby stated that the LUT/Bond shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the LUT/bond before either the Central Tax Authority or the State Tax Authority till the administrative mechanism for assigning of taxpayers to the respective authority is implemented. 3. This circular is clarificatory in nature and cannot be made use of for interpretation of provisions of law. If any member of trade has any doubt , he may refer the matter to this office for further clarification. All ..... X X X X Extracts X X X X X X X X Extracts X X X X
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