Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India has issued a Circular No. 26/2017-Customs dated 01-Jul-2017 read with Circular No. 2/2/2017-GST dated 04-Jul-2017 clarifying that as per Rule 96A of the Central Goods and Services Tax Rules, 2017, any registered person/exporter availing the option to supply goods or services for export without payment of Integrated Tax (IGST) shall furnish, prior to export, a Bond or a Letter of Undertaking (LUT) in FORM GST RFD-11 on the common portal from 01-Jul-2017. The same will be submitted to office of Jurisdictional Commissioner in the format specified in FORM RFD-11 till the module for furnishing of FORM RFD-11 is available on the common portal.
Trade and Industries are facing now the teething issues that how and which documents will be furnished with Letter of Undertaking (LUT). Keeping in mind all these problems of Trade & Industries, the author of this post hereby tried his level best to further clarify about the process and procedure for submission of Letter of Undertaking (LUT) to the office of Jurisdictional Commissioner.
At the outset one must to know that who can file Letter of Undertaking (LUT).
CBEC has clarified on 07-Jul-2017 vide Notification no. 16/2017-Central Tax that the following person shall be eligible for submission of Letter of Undertaking (LUT) in place of a bond as mentioned below:
Who has received the due foreign inward remittances amounting to a minimum of 10% 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.
How to file Letter of Undertaking (LUT)?
The registered person/exporter will prepare and submit a request printed on its letter head for acceptance of LUT FORM GST RFD-11 duly filled & signed by the Working Partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor on the letter head of the registered person as the case may be.
What documents a registered person/exporter need to submit with Letter of Undertaking (LUT)?
Along with FORM RFD-11 supported by a request letter the following documents need to be submitted to the office of Jurisdictional Commissioner:
Will Status Holder need to furnish Bank Guarantee with Letter of Undertaking (LUT)?
The Status Holder is exempted from furnishing of Bank Guarantee with Letter of Undertaking(LUT).
To whom will the registered person/exporter submit the Bond/LUT in the office of Jurisdictional Commissioner?
The request letter along with Letter of Undertaking (LUT) and all above documents shall be submitted to the concerned Deputy/Assistant Commissioner (GST Export Cell) having jurisdiction over the principal place of business of the registered person/exporter. The registered person/exporter is at liberty to furnish the bond/LUT before 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 general instruction, to registered person/exporter, the Bond/LUT in all cases be accepted by Central tax officer till such time the said administrative mechanism is implemented.
How a registered person/exporter will come to know that Bond/LUT is accepted by concerned authority?
The concerned Deputy/Assistant Commissioner (GST Export Cell) will process the request and after scrutiny of the documents will issue the Acceptance Letter in the prescribed format.
What happen if any document is found deficient?
On scrutiny, if any document is found deficient/ improper by the concern Deputy/Assistant Commissioner (GST Export Cell) the same will be communicated to the applicant. Thereafter final decision on issuance of Acceptance Letter of Bond/LUT may be taken after the deficiencies have been removed by the applicant.
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