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CLARIFICATION ON ISSUE RELATED TO FURNISHING OF BOND / LETTER OF UNDERTAKING FOR EXPORTS

A much needed clarity given by circular 40/14/2018 GST dated 6th April,2018 to trade and administration. The clarity sought by local tax administration as much as local bodies explained below

Form for LUT:

  • Earlier the (exporters) were required to download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner.
  • Now, the registered person (exporters) shall fill and submit FORM GST RFD-11 on the common portal and the LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated on-line.

Document for LUT:

  • Earlier, self deceleration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of Notification No. 37/2017- Central Tax dated 4th October, 2017. 
  • Now, by this circular it has been clarified that no such document needs to be physically submitted to the jurisdictional office for acceptance of LUT.

Acceptance of LUT/Bond:

  • Earlier, LUT/Bond should be accepted within a period of 3 working days of its receipt along with the self declaration and if not accepted within a period of 3 working days from the sate of submission, it shall be deemed to have been accepted.
  • Now the LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If  it is discovered that an exported whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter's LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected ab initio.


Compiled By
CA.RJEYARAJAN FCA.,
Chartered Accountant
can be reached by: jeyarajan@rareassociates.in

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Location: Thoothukudi, Tamil Nadu, India

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