GST- Submission of Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act — Further Clarification- Issued.
02/2017/TNGST Dated:- 10-10-2017 Tamil Nadu SGST
GST – States
GOVERNMENT OF TAMIL NADU
COMMERCIAL TAXES DEPARTMENT
OFFICE OF THE ADDITIONAL CHIEF SECRETARY / COMMISSIONER OF COMMERCIAL TAXES
Ezhilagam, Chepauk, Chennai 600 005.
PRESENT: DR.C.CHANDRAMOULI, I.A.S.
Circular No. 02/2017/TNGST
(RC 085 /2016/A1/Taxation Cell)
Dated: 10.10.2017.
Subject: GST- Submission of Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act – Further Clarification- Issued.
In view of the difficulties being faced by the exporters in submission of bonds/Letter of Undertaking (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 which extends the facility o
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ses exceeds two hundred and fifty lakh rupees unlike Notification No. 16/2017-CentraI Tax dated 7th July, 2017 which extended the facility of export under LUT to status holder as specified in paragraph 5 of the Foreign Trade Policy 2015-2020 and to persons receiving a minimum foreign inward remittance of 10% of the export turnover in the preceding financial year which was not less than Rs. one crore.
b) Validity of LUT: The LUT shall be valid for the whole financial year in which it is tendered. However, in case the goods are not exported within the time specified in sub-rule (1) of rule 96A of the CGST Rules and the registered person fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn. If the amount mentioned 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 As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time
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the effect that the conditions of LUT have been fulfilled shall be accepted unless there is specific information otherwise. That is, self-declaration by the exporter to the effect that he has not been prosecuted should sufT1ce for the purposes of Notification No. 37/2017-Central Tax dated 4th October, 2017. Verification, if any, may be done on post-facto basis.
e) Time for acceptance of LUT/Bond: As LUT/Bond is a priori requirement for export, including exports to a SEZ developer or a SEZ unit, the LUT/bond should be processed on top most priority. It is clarified that LUT/bond should be accepted within a period of three working days of its receipt along with the self-declaration as stated in para 2(d) above by the exporter. If the LUT / bond is not accepted within a period of three working days from the date of submission, it shall deemed to be accepted.
f) Bank guarantee: Since the facility of export under LUT has been extended to all registered persons, bond will be required to b
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quired to be carried out under the supervision of the officer, shall be done under the supervision of the central excise officer having jurisdiction over the place of business where the sealing is required to be done. A copy of the sealing report would be forwarded to the Deputy/Assistant Commissioner having jurisdiction over the principal place of business.
i) Purchases from manufacturer and Form CT-1: It is clarified that there is no provision for issuance of CT-1 form which enables merchant exporters to purchase goods from a manufacturer without payment of tax under the GST regime. The transaction between a manufacturer 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 lik
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T for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SEZ developer or SEZ unit under LUT will also be permissible on the same lines. The supply of services, however, to Nepal or Bhutan will be deemed to be export of services only if the payment for such services is received by the supplier in convertible foreign exchange.
l) Jurisdictional officer:
In this backdrop, it is hereby informed that the Bond or the letter of undertaking in place of Bond, in all cases, will be accepted by the jurisdictional Assistant Commissioners in respect of Assessment Circles and in the absence of Assistant Commissioner of State Taxes it will be accepted by the State Tax Officer of the Assessment Circle or any other officer as may be specified by the
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