Exports under GST
No. CLE-HO/POL/GST/17-18
July 4, 2017
Regional Directors (Kanpur, Chennai, Delhi, Mumbai, Kolkata)
Office Incharge, CLE, Agra
APO, CLE, Jalandhar
Sub : Exports under GST
Dear Sir
Further to the circular below, the software of CLE is being upgraded for issue of EPC and IC. Once it is upgraded we will send a confirmation to you
Thanks and regards
D. Gokula Krishnan
Asst. Director
No. CLE-HO/POL/GST/17-18
July 4, 2017
Members of the Council
Sub : Exports under GST
As per information received from Federation of Indian Export Organisations (FIEO), the updates on export under GST regime is given below.
- As members are kindly aware, exporters have the option to either pay the applicable IGST for export goods and then claim refund or go for zero rated IGST facility for exports.
- Ministry of Finance has issued Notification No. 15/2017 – Central Tax New Delhi dated 1st July 2017 (copy enclosed) notifying the Central Goods and Services Tax (Third Amendment) Rules, 2017. The Rules have prescribed the procedure for exporters availing the option to supply goods or services for export without payment of integrated tax. Such exporters shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 (copy enclosed) to the jurisdictional Commissioner. The relevent Rule as incorporated under 96A is reproduced below: :
96A Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking.- (1) Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of — (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. (2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system. (3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79. (4) The export as allowed under bond or Letter of Undertaking withdrawn in terms of subrule (3) shall be restored immediately when the registered person pays the amount due. (5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond. (6) The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.”;
Members may kindly note the above. The format of the Bond and Letter of Undertaking is enclosed. Members may accordingly submit the Bond or Letter of Undertaking as the case may be to the concerned Jurisdictional Commissioner of Central Excise (now designated as GST authority).
A copy of the guidance note issued by Central Board of Excise and Customs for importers and exporters is also enclosed herewith for ready reference.
Thanks and regards
R. Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS