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Exports under Bond/ LUT – Issue of Customs and GST circulars

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No:CLE/HO/POLICY/GST/2017
July 11, 2017

Members of the Council,

Sub : Exports under Bond/ LUT – Issue of Customs and GST circulars

Dear Sir,

Members may kindly note the following with regard to procedure for execution of bond/letter of undertaking for exports without payment of IGST.

·        Customs Circular No.26/2017-Customs dated 1st July 2017 specifies the format of GST RFD-11 towards Furnishing of bond or Letter of Undertaking for export of goods or services.

·        GST Circular No.2/2/2017-GST dated 4th July 2017 clarifies that the acceptance of the Bond/Letter of Undertaking required to be furnished by the exporter while exporting shall be done by the jurisdictional Deputy/Assistant Commissioner. The Bond/Letter of Undertaking required to be furnished under rule 96A of the said rules may be furnished manually to the jurisdictional Deputy/Assistant Commissioner in the format specified in FORM RFD-II till the module for furnishing of FORM RFD-11 is available on the common portal. The exporters may download the FORM GST RFD-11 from the website of the Central Board of Excise & Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner.

·        GST Notification No.16/2017-Central Tax dated 7th July 2017 states that the following registered person shall be eligible for submission of Letter of Undertaking in place of a bond for exports:-

a.      a status holder (one star to five star export houses) as specified in paragraph 5 of the Foreign Trade Policy 2015-2020; or

b.      who has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year.

·        GST Circular No.4/4/2017 dated 7th July 2017 states that LUT shall be valid for twelve months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond. Exports may be allowed under existing LUTs/Bonds till 31st July 2017. Exporters shall submit the LUTs/bond in the revised format latest by 31st July 2017.

The above 4 circulars are enclosed herewith for kind information of members.

Thanks & regards,

R.Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS

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