Following the Notification permitting all exporters to furnish Letter of Undertaking instead of Bond under the new GST regime, the Central Board of Excise and Customs (CBEC), today clarified certain issues on eligibility to export under LUT, validity of LUT, Form for bond/LUT, related documents, time for acceptance of LUT/Bond, etc.
Regarding the issues on bank guarantee, it clarified that since the facility of export under LUT has been extended to all registered persons, bond will be required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees two hundred and fifty lakhs. A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount.
The exporters shall furnish a running bond where the bond amount would cover the amount of self-assessed estimated tax liability on the export. The exporter, in such cases, shall ensure that the outstanding integrated tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the said liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability. The onus of maintaining the debit / credit entries of integrated tax in the running bond will lie with the exporter. The record of such entries shall be furnished to the Central tax officer as and when required.
The Notification issued today in rescinded Notification No. 16/2017 – Central Tax dated 7th July, 2017 except as respects things done or omitted to be done before such supersession.
Read the full text of the Circular below.
