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Export without payment of duty in GST

Today in this blog we will discuss the latest confusing topic how to do Export without payment of duty in GST. what are the procedure to be followed for the export of goods and services.

There are the two option for the export without payment of duty –

Letter of undertaking in GST-

An person can opt for the LUT if he satisfy any one condition

First condition 

Export of goods or service in previous financial year exceed Rs 1 crore and 90 percent of the receipt has been come from the  export.

Second condition

He is an status holder as specified in paragraph 5 of the Foreign Trade Policy 2015-2020;

Subject to 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.

Documents required for the LUT

1 Letter of undertaking format given below in Rs 500 stamp paper
2 RFD 11 format given below
3 Company pan card and COI
4 Pan card and aadhar card of all directors/partner
5 Address proof of company
6 CA letter that company satisfied the condition of lut
7 Certificate of Export council if he is an member of exporter
8 Import export code certificate

Execution of Bonds IN GST –

If a person not satisfied the LUT condition. He can sale the goods in bonds –

Documents required for the Bonds

1 Bonds in Rs 500 stamp paper with bank guarantee 15 percent of the bonds amount
2 RFD 11 format given below
3 Company pan card and COI
4 Pan card and aadhar card of all directors/partner
5 Address proof of company
6 CA letter that company satisfied the condition of lut
7 Certificate of Export council if he is an member of exporter
8 Import export code certificate

Pls note – If a person export 1 crore services in a year , bond value will be 18 laks and bank guarantee will be 270000(18*15%)

Format of Letter of undertaking in Word –

Letter of Undertaking for export of goods or services without payment of integrated tax

                                                           (See rule 96)

To

The President of India (hereinafter called the “President”), acting through the proper officer

I/We__________ of.______(address of the registered person) having Goods & Services Tax Identification NumberNo_______ , hereinafter called “the undertaker(s) including

my/our respective heirs, executors/ administrators, legal representatives/successors and assigns by these presents, hereby jointly and severally undertake on this____ day of__________

to the President

(a) to export the goods or services supplied without payment of integrated tax within time

specified in sub-rule (9) of rule 96 ;

(b) to observes all the provisions of the Goods and Services Tax Act and rules made thereunder,in respect of export of goods or services;

(c) pay the integrated tax, thereon in the event of failure to export the goods or services, along with an amount equal to eighteen percent interest per annum on the amount of tax not paid, from  the date of invoice till the date of payment.

I/We declare that this undertaking is given under the orders of the proper officer for the performance of enacts in which the public are interested.

IN THE WITNESS THEREOF these presents have been signed the day here in before written  by the undertaker(s)

Signature(s) of undertaker(s).

Date :

Place :

Witnesses

(1) Name and Address                                                 Occupation

(2) Name and Address                                                 Occupation

Date

Place

Accepted by me this__________day of _______month________year

________(Designation)

for and on behalf of the President of India

 

 

FORM GST RFD-11

[See rule 96A]

Furnishing of bond or Letter of Undertaking for export of goods or services

  1. GSTIN
  1. Name

 

3. Indicate the type of document furnished Bond: Letter of Undertaking
4. Details of bond furnished
Sr. No. Reference no. of the bank guarantee Date Amount Name of bank and
branch
1 2 3 4 5

Note – Hard copy of the bank guarantee and bond shall be furnished to the jurisdictional officer.

  • Declaration –
  • The above-mentioned bank guarantee is submitted to secure the integrated tax payable on export of goods or services.
  • I undertake to renew the bank guarantee well before its expiry. In case I/We fail to do so the department will be at liberty to get the payment from the bank against the bank guarantee.
  • The department will be at liberty to invoke the bank guarantee provided by us to cover the amount of integrated tax payable in respect of export of goods or services.

Signature of Authorized Signatory

Name

Designation / Status ——-

 

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