By issuing this recent circular 5/5/2017 dated 11 AUGUST 2017 - the clarifications have been given by the commissioner (GST)
Notification No. 16/2017 – GST dated 7th July, 2017
Circular No. 2/2/2017 – GST dated 5th July, 2017
Circular No. 4/4/2017 – GST dated 7th July, 2017
1- Eligibility to export under LUT (letter of Undertaking) -
## LUT can be used in lieu of BOND only by all suppliers,
## Registered person only "only such exporters are eligible to LUT facilities who have received a remittance of Rs. one crore or 10% of export turnover, whichever is a higher amount, in the previous financial year"
## Further it has been allowed all those who holds status in para 3.20 & 3.21 of Foregin Trade policy 2015-2020 irrespective of satisfying above conditions...
2- Form for LUT -
## Bonds to be furnished on -Non-Judicial stamp paper
## LUT should be on letter head with signature of authorized person and seal
3- Time for acceptance of LUT/ BOND-
## Should be accepted within 3 working days
## applicable for export, supplies to SEz developer or unit
4- Form CT-1
## the form was earlier used for purchase of goods by merchant exporter without payment of duty which no LONGER valid now,
## zero rating supplies, supply to sez, is only allowed to actual exporter under LUT/ Bond or with payment of IGST
5- Transaction with EOU -
## Supplies to EOU are taxable under GST,
## However EOU are eligible for zero rating supplies to the extent of its actual export,
6- Forward inward remittance in Indian rupees -
## "it is clarified that acceptance of LUT instead of a bond 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 applicable RBI guidelines" - ONLY FOR GOODS
## Services to SEZ or SEZ developer will also be permitted on the same line,
## "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." - SERVICE will still be treted as export when in convertible foreign exchange
7- Bank Guarantee -
Bank guarantees are normally required in case of submitting bond which overall 15% subject to the power of comissionar to waive off but the power should be applied on satisfying below criteria -
## Registered with Export promotion council,
## " the total amount of inward foreign remittances received by all the registered persons, having one Permanent Account Number, maybe Rs. 1 crore or more and it also maybe 10% or more of total export turnover. In such cases, the registered person can be allowed to submit bond without bank guarantee"
8- Jurisdictional officer -
## Exporter may furnish LUT / Bond to central authorities or state tax authorities till the mechanism is in place to file within jurisdictional area where principal place of business lies
9- Documents for LUT -
## Self attested document can be submitted,
10 - Applicability of earlier issued circulars on this issue -
## effective from July 01, 2017
Please refer the link to access full circular for your records/ reference-
http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-5-gst.pdf
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""Summaries prepared based on the notification for your easy reference"""
Notification No. 16/2017 – GST dated 7th July, 2017
Circular No. 2/2/2017 – GST dated 5th July, 2017
Circular No. 4/4/2017 – GST dated 7th July, 2017
1- Eligibility to export under LUT (letter of Undertaking) -
## LUT can be used in lieu of BOND only by all suppliers,
## Registered person only "only such exporters are eligible to LUT facilities who have received a remittance of Rs. one crore or 10% of export turnover, whichever is a higher amount, in the previous financial year"
## Further it has been allowed all those who holds status in para 3.20 & 3.21 of Foregin Trade policy 2015-2020 irrespective of satisfying above conditions...
2- Form for LUT -
## Bonds to be furnished on -Non-Judicial stamp paper
## LUT should be on letter head with signature of authorized person and seal
3- Time for acceptance of LUT/ BOND-
## Should be accepted within 3 working days
## applicable for export, supplies to SEz developer or unit
4- Form CT-1
## the form was earlier used for purchase of goods by merchant exporter without payment of duty which no LONGER valid now,
## zero rating supplies, supply to sez, is only allowed to actual exporter under LUT/ Bond or with payment of IGST
5- Transaction with EOU -
## Supplies to EOU are taxable under GST,
## However EOU are eligible for zero rating supplies to the extent of its actual export,
6- Forward inward remittance in Indian rupees -
## "it is clarified that acceptance of LUT instead of a bond 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 applicable RBI guidelines" - ONLY FOR GOODS
## Services to SEZ or SEZ developer will also be permitted on the same line,
## "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." - SERVICE will still be treted as export when in convertible foreign exchange
7- Bank Guarantee -
Bank guarantees are normally required in case of submitting bond which overall 15% subject to the power of comissionar to waive off but the power should be applied on satisfying below criteria -
## Registered with Export promotion council,
## " the total amount of inward foreign remittances received by all the registered persons, having one Permanent Account Number, maybe Rs. 1 crore or more and it also maybe 10% or more of total export turnover. In such cases, the registered person can be allowed to submit bond without bank guarantee"
8- Jurisdictional officer -
## Exporter may furnish LUT / Bond to central authorities or state tax authorities till the mechanism is in place to file within jurisdictional area where principal place of business lies
9- Documents for LUT -
## Self attested document can be submitted,
10 - Applicability of earlier issued circulars on this issue -
## effective from July 01, 2017
Please refer the link to access full circular for your records/ reference-
http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-5-gst.pdf
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