Further clarification to Circular No. 1\/2017 – GST dated 21st July, 2017.
CIRCULAR No. 02\/2017-GST Dated:- 17-8-2017 Assam SGST – Circular
GST – States
GOVERNMENT OF ASSAM
\nORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM
\nKAR BHAWAN, DISPUR, GUWAHATI-6
\nCIRCULAR No. 02\/2017-GST
\nDated Dispur, the 17th August, 2017.
\nNo. CT\/GST-10\/2017\/191.- This is for further clarification to Circular No. 1\/2017 – GST dated 21st July, 2017 in order to remove various doubt regarding interpretation of above circular.
\nTherefore, in exercise of powers conferred under section 168 of the Assam Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, following issues are being clarified hereunder:
\n(a) Eligibility to export under LUT: Notification No. 16\/2017 – Central tax dated 7th July, 2017 issued by CBEC specifies conditions to be fulfilled for export under Letter of Undertaking (LUT) in place of bond. It is hereby clarified that any registered person who<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n er has an export turnover of ₹ 2 crore. He has received ₹ 80 Iacs as foreign inward remittances in FY 2016-17 which is 40% of the export turnover. He will not be eligible for LUT facility as remittance received is less than ₹ 1 crore. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n in the nature of supply and the same has not been exempted under GST even on submission of LUT\/bond. Therefore, such supplies would be subject to GST. The zero rating of exports, including supplies to SEZ, is allowed only with respect to supply by the actual exporter under LUT\/bond or payment of IGST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n applicable RBI guidelines. It may also be noted that supply of services to SEZ developer or SEZ unit 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 2017 that Bond\/LUT shall be accepted by the jurisdictional Assistant Commissioner of State tax \/ Superintendent of State tax having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond\/LUT before State Tax Authority or Central Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. It is reiterated that the State Tax officers shall facilitate all exporters whether or not the exporter was registered with the State Government in the earlier regime. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Further clarification to Circular No. 1\/2017 – GST dated 21st July, 2017.CIRCULAR No. 02\/2017-GST Dated:- 17-8-2017 Assam SGST – CircularGST – StatesGOVERNMENT OF ASSAM ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM KAR BHAWAN, DISPUR, GUWAHATI-6 CIRCULAR No. 02\/2017-GST Dated Dispur, the 17th August, 2017. No. CT\/GST-10\/2017\/191.- This is for further clarification to Circular No. … Continue reading “Further clarification to Circular No. 1\/2017 – GST dated 21st July, 2017.”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7225","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7225"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7225\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n(iv) An exporter has export turnover of ₹ 40 crore. He has received ₹ 2 Crores as foreign inward remittances in FY 2016-17 which is 5% of the export turnover. He will not be eligible for LUT facility as remittance received is less than 10% of export turnover, even though it is in excess of ₹ 1 crore.
\n(v) An exporter has received ₹ 1 Crore 10 Iacs as foreign inward remittances in FY 2016-17 which is 20% of the export turnover. In this scenario, he will be eligible for LUT facility.
\nIt may however be noted that a “status holder” as specified in paragraphs 3.20 and 3.21 of the Foreign Trade Policy 2015-2020 is eligible for LUT facility regardless of whether he satisfies the above conditions. For “Status holder” re<\/p>\n
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\n(d) Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for them. Therefore, supplies to EOUs are taxable under GST just like any other taxable supplies. The EOUs, to the extent of exports, are eligible for zero rating like any other exporter.
\n(e) Forward inward remittance in Indian Rupee: Various representations have been received with respect to receipts of proceeds of supplies in Indian Rupee especially with respect to exports to Nepal, Bhutan and SEZ developer\/SEZ unit. Attention is invited to Para A (v) Part-I of RBI Master Circular no. 14\/2015-16 dated July I, 2015 (updated as on November 5, 2015), which states “there is n<\/p>\n
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\n(f) Bank guarantee: Circular No. 1\/2017-GST dated 21st July, 2017 provides, that bank guarantee should normally not exceed 15% of the bond amount. However, the Commissioner may waive off the requirement to furnish bank guarantee taking into account the facts and circumstances of each case. It is expected that this provision would be implemented liberally. Some of the instances of liberal interpretation are as follows:
\n(i) an exporter registered with recognized Export Promotion Council can be allowed to submit bond without bank guarantee on submission of a self-attested copy of the proof of registration with a recognized Export Promotion Council.
\n(ii) In<\/p>\n
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\n(i) Documents for LUT: Documents submitted as proof of fulfilling the conditions of LUT shall be accepted unless there is any evidence to the contrary. Self-declaration shall be accepted unless there is specific information otherwise. For example, a self-declaration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of notification No. 16\/2017 – Central tax dated 7th July, 2017 issu<\/p>\n
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