Submission of Bond/Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act.
Circular No. 01/2017 TNGST Dated:- 11-8-2017 Tamil Nadu SGST
GST – States
GOVERNMENT OF TAMIL NADU
COMMERCIAL TAXES DEPARTMENT
Ezhilagam, Chepauk, Chennai 5
Circular No. 01/2017 TNGST
(Re 085/2016 Taxation A1)
Dated: 11-08-2017
Subject: Submission of Bond/Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act.
1. The Tamil Nadu Goods and Services Tax Act, the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017, have come into force with effect from 1st July 2017.
2. Section 16(3) of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the “IGST Act”) provides that a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:-
(a) he may supply goods or se
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egrated tax, for furnishing a Letter of Undertaking in place of a Bond.
4. Whereas rule 96-A of the Central Goods and Services Tax Rules, 2017 provides that refund of integrated tax paid on export of goods or services can be availed by submission of bond or Letter of Undertaking in Form GST RFD-011.
5. Any registered persons availing the option to supply goods or services for export without payment of integrated tax is required to 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 invocie tor 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 invoice for export, if the payment of such
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the exporter. The exporter is at liberty to furnish the bond/LUT before the Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of tax payers to respective authority is implemented. However, if in a State, the Commissioner of State Tax so directs, by a general instruction, to exporter, the Bond/LUT in all cases be accepted by Central Tax officer till such time the said administrative mecahnism is implemented, Central Tax officers are directed to take every step to facilate the exporters.
8. It is relevant to note that section 4 of Integrated Goods and Services Tax Act, 2017 provides that the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the proper officers for the purposes of the Integrated Goods and Services Tax Act, 2017 and Notification No. 4/2017 – Integrated Tax, dated the 28th June, 2017 provides that the Central Goods and Services Tax Rules, 2017, for
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the administrative mechanism for assignment of tax payers to respective authorities is implemented.
10. The following registered person shall be eligible for submission of Letter of Undertaking in place of a bond (vide Notification No. 16/2017 Central Tax, dated 07-07-2017):-
(a) a status holder 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 100% of the export turnover, which should not be less than one crore rupees, in the preceding financial year, and he has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees.
11. The Letter of Undertaking shall be furnished in duplicate for a financial year in the annexure to FORM GST RFD – 11 referred to in sub-rule (1) of rule 96A of the Central Goods and Services Tax Rules, 2017
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