Customs dept Clarifies Issues related to Bond/ LoU for Exports without payment of IGST

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The Customs Department recently issued a public notice clarifying the troubles related to issue of Bond or Letter of Undertaking for exports without payment of Integrated Tax under the Goods and Services Tax.

The public notice issued by the Commissioner of Customs, Raigad, Maharashtra said that the department had received from various stake holders regarding difficulties in complying with the procedure prescribed for making exports of goods and services without payment of integrated goods and service tax.

Earlier, the Central Board of Excise and Customs, vide its circular dated 8.07.2017 had clarified various issues relating to furnishing of Bond/Letter of Undertaking in the above case.

Rule 96A of the Central Goods and Services Tax Rules, 2017 allows any registered person availing the option to supply goods or services for export without payment of integrated tax to furnish, prior to export, a bond or a Letter of Undertaking. This bond or Letter of Undertaking is required to be furnished in FORM GST RFD-11 on the common portal.

The circular required furnishing of Bond on non-judicial stamp paper of the value as applicable in the State in which bond is being furnished. It was directed that the exporters shall furnish a running Bond which would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself.

It was clarified that the jurisdictional Commissioner may decide the amount of bank guarantee depending upon the track record of the exporter.

It further clarified that the existing practice of sealing the container with a bottle seal under Central Excise supervision or otherwise would continue till 1st September, 2017. Such sealing shall be done under the supervision of the officer having physical jurisdiction over the place of business where the sealing is being done.

The Notice required the exporters to contact Deputy/ Assistant Commissioner in charge of appraising Main Export through email to apmainexp@jawaharcustoms.gov.in or call to 022-27244959 in case of any difficulties.

Read the full text of the Notice below.