Clarification on Issues Related to Furnishing of Bond/LOU for Exports

Circular No. 40/14/2018-GST

No. 349/82/2017-GST

Government of India

Ministry of Finance Department of Revenue

Central Board of Indirect Taxes and Customs

(GST Policy Wing)

***

 

New Delhi, April 6, 2018

To,

The Principal  Chief  Commissioners  / Chief  Commissioners  / Principal  Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals / Director Generals (All)

Madam/Sir,

Subject: Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg.

Various communications have been received from the field formations and exporters that the LUTs being submitted online in FORM GST RFD-11 on the common portal are not visible to the jurisdictional officers of Central Board of Indirect Taxes and Customs and of a few States. Therefore, a need was felt for a clarification regarding the acceptance of LUTs being submitted online in FORM GST RFD-11.

  1. 2. Accordingly, in partial modification of Circular No. 8/8/2017-GST dated 4th  October,

2017,  sub-paras  (c),  (d)  and  (e) of  para  2  of  the  said  Circular  are  hereby  replaced  by the following:

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.

  1. d) Documents for LUT: No document  needs to be physically  submitted  to the jurisdictional office for acceptance of LUT.
  1. e) 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 37/2017-Central Tax, then the exporter’s LUT will be liable for

rejection. In case of rejection, the LUT shall be deemed to have been rejected ab initio.”

  1. 3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
  1. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.

(Upender Gupta) Commissioner (GST)

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