GST - Export under Bond / LUT – Revised Procedure
CGST Rule 96 A has been notified vide Notification No. 15/2017 – Central Tax dated 1st July, 2017 requiring furnishing of Bond/ LUT, for export without payment of IGST. The bond is to be furnished prior to export.
Circular No. 26/2017-Customs dated the 1st July, 2017 detailing the revised Export procedure / refund procedure and sealing of containerized cargo. The revised self sealing procedure is effective from 01/09/2017.
There is no clarity on whether LUT would be accepted now since the notification specifying the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond, is not yet issued.
As regards export invoices, the description of invoices should be SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF or SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST.
The details of the relevant export invoices contained in FORM GSTR-1 shall be transmitted electronically by the common portal to the Customs system and the said system shall in turn electronically transmit back to the common portal a confirmation that the goods covered by the said invoices have been exported out of India.
Click to view/download text of Rule 96A
Click to download Circular No. 26/2017-Customs dated the 1st July, 2017
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Date : 04-07-2017