GST – States – 07/2017 – Dated:- 19-7-2017 – GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015 TRADE CIRCULAR NO. 07/2017 DATED: 19.07.2017 Subject: Clarification/Guidelines regarding submission of Bond/Letter of Undertaking (LUT) by the Exporters in respect of Exports without payment of Integrated Tax under WBGST/ CGST Rule 96A. Ref: Relevant Ordinance/Act/Notification/Circular in this regard- (a) West Bengal Goods and Services Tax Ordinance, 2017; (b) The Integrated Goods and Services Tax Act, 2017; (c) West Bengal Goods and Services Tax Rules, 2017; (d) Notification No. 16/2017 dated 07.07.2017 of Department of Revenue (Central Board of Excise & Customs), Ministry of Finance, Government of India; (e) Circular No.4/4/2017-GST of Commissioner of GST (Central Board of Excise & Customs) A number of queries have been received from the Trade Associations and Exporters regarding procedure to be followed for export of goods and services u
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for export without payment of Integrated Tax is required to furnish, prior to export, a Bond or a LUT in Form GST RFD-11 to the jurisdictional Commissioner binding himself to pay the tax due along with interest in terms of sub-section (1) of section 50 within a period of – (a) Fifteen (15) days after the expiry of three months from the date of issue of Invoice for export, if the goods are not exported out of India; or (b) Fifteen (15) days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of Invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. (3) In terms of provision of sub-rule (5) of the aforesaid rule 96A, the State Government is empowered to issue Notification and specify certain conditions and safe-guards under which an exporter may furnish LUT in place of Bond. (4) In view of this, attention of Trade Associations, exporters is invited to the followin
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e working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor on the letter head of the registered person. (c) All exporters, not covered under Para 4 (a) of this Circular, would have to submit Bond. (d) A running Bond is required to be furnished in Form GST RFD-11 under rule 96A of the West Bengal Goods and Services Tax Rules, 2017. The Bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter shall ensure that the outstanding tax liability on exports is within the Bond amount. In case the Bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter shall furnish a fresh Bond to cover such liability. (e) Further, FORM RFD-11 under rule 96A of the West Bengal Goods and Services Tax (Third Amendment) Rules, 2017 requires furnishing a bank g
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ssioner, as the case may be, in the format specified in FORM RFD-11 till the module for furnishing of FORM RFD-11 is available on the common portal and furnish the duly filled form to the jurisdictional Senior Joint Commissioner or Joint Commissioner, as the case may be. Moreover, the exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented, (h) It is also clarified in this respect that, the Bond or the LUT, as the case may be, will be accepted by the officer not below the rank of State Tax Officer, having jurisdiction over the principal place of business of the exporter. The Bond amount, corresponding Bank Guarantee, if any, shall be reviewed continuously and matched with the returns filed by the exporters. Instruction to the exporters shall be issued immediately in case of the Bond becomes insufficient to cover the estimated tax liability for f
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21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange. (c) For deemed export, FOR value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year. (d) For granting status, export performance is necessary in at least two out of three years. 3.21 Status Category: Status Category Export Performance FOB / FOR (as converted) Value (in US $ million) One Star Export House 3 Two Star Export House 25 Three Star Export House 100 Four Star Export House 500 Five Star Export House 2000 [Extract from FOREIGN TRADE POLICY (1st April, 2015 – 31st March, 2020, Department of Commerce, Ministry of Commerce and Industry, Government of India] FORM GST RFD-11 (See rule 96A) Furnishing of bond or Letter of Undertaking for export of goods or services 1. GSTIN 2. Name 3. Indicate the type of document furnished Bond: Letter of Undertaking: 4. Det
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……………………………………………….. hereinafter called "obligor(s)", am/are held and firmly bound to the President of India (hereinafter called "the President") in the sum of ……………………………………… rupees to be paid to the President for which payment will and truly to be made. I/We jointly and severally bind myself/ourselves and my/our respective heirs/ executors/ administrators/ legal representatives/successors and assigns by these presents; Dated this……….. day of ……………………; WHEREAS the above bounden obligor has been permitted from time to time to supply goods or services for export out of India without payment of integrated tax; AND whereas the obligor desires to export goods or services in accordance with the provisions of clause (a) of sub-section (3) of section 16; AND WHEREAS the Commissioner has required the obligor to furnish bank guarantee for an amount of …………………………. rupee
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are that this bond is given under the orders of the Government for the performance of an act in which the public are interested; IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the obligor(s). Date: Place: Signature(s) of obligor(s) Witnesses (1) Name and Address Occupation (2) Name and Address Occupation Accepted by me this ……………………………… day of ……………….. (month) ……………. (year) …………………………….of………………………………. (Designation) for and on behalf of the President of India Letter of Undertaking for export of goods or services without payment of integrated tax (See rule 96A) To The President of India (hereinafter called the "President"), acting through the proper officer I/We ……………………………….. of ……………………………………………. (address of the registered person) having Goods and Services Tax Identification Number …….
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