Bond / LUT by Exporter under West Bengal GST : Clarification : TRADE CIRCULAR NO 7/2017 DATED 19th July 2017

STATE GST – WEST BENGAL – CLARIFICATION/GUIDELINES ON SUBMISSION OF BOND/LETTER OF UNDERTAKING (LUT) BY EXPORTERS IN RESPECT OF EXPORTS WITHOUT PAYMENT OF INTEGRATED TAX UNDER WBGST/RULE 96A OF THE CGST RULE

TRADE CIRCULAR NO.7/2017, DATED 19-7-2017

Relevant Ordinance/Act/Notification/Circular in this regard—

A number of queries have been received from the Trade Associations and Exporters regarding procedure to be followed for export of goods and services under the GST regime. This issue is examined in detail.

ANNEXURE:

3.20 Status Holder;

[Extract from FOREIGN TRADE POLICY (1st April, 2015 – 31st March, 2020, Department of Commerce, Ministry of Commerce and Industry, Government of India]

FORM GST RFD-11

(See rule 96A)

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

1. GSTIN

2. Name

3. Indicate the type of document furnished Bond:          Letter of Undertaking:

4. Details of bond furnished

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

5. Declaration —

Bond for export of goods or services without payment of integrated tax

(See rule 96A)

I/We . . . . . . . . . . . . . . . . . . . . . .of . . . . . . . . . . . . . . . . . . . . . . hereinafter called “obligor(s)”, am/are held and firmly bound to the President of India (hereinafter called “the President”) in the sum of . . . . . . . . . . . . . . . . . . . . . . rupees to be paid to the President for which payment will and truly to be made.

I/We jointly and severally bind myself/ourselves and my/our respective heirs/ executors/ administrators/ legal representatives/successors and assigns by these presents; Dated this . . . . . . . . . . . . . . . . . . . . . . day of . . . . . . . . . . . . . . . . . . . . . ..;

WHEREAS the above bounden obligor has been permitted from time to time to supply goods or services for export out of India without payment of integrated tax;

AND whereas the obligor desires to export goods or services in accordance with the provisions of clause (a) of sub-section (3) of section 16;

AND WHEREAS the Commissioner has required the obligor to furnish bank guarantee for an amount of . . . . . . . . . . . . rupees endorsed in favour of the President and whereas the obligor has furnished such guarantee by depositing with the Commissioner the bank guarantee as afore mentioned;

The condition of this bond is that the obligor and his representative observe all the provisions of the Act in respect of export of goods or services, and rules made thereunder;

AND if the relevant and specific goods or services are duly exported;

AND if all dues of Integrated tax and all other lawful charges, are duly paid to the Government along with interest, if any, within fifteen days of the date of demand thereof being made in writing by the said officer, this obligation shall be void;

OTHERWISE and on breach or failure in the performance of any part of this condition, the same shall be in full force and virtue:

AND the President shall, at his option, be competent to make good all the loss and damages, from the amount of bank guarantee or by endorsing his rights under the above-written bond or both;

I/We further declare that this bond is given under the orders of the Government for the performance of an act in which the public are interested;

IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the obligor(s).

Witnesses

Accepted by me this . . . . . . . . . . . . . day of . . . . . . . . . . . . . . (month) . . . . . . . . . . . . (year) . . . . . . . . . . . . . . . of . . . . . . . . . . . . . . . . . (Designation)

for and on behalf of the President of India

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

(See rule 96A)

To

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

I/We . . . . . . . . . . . . of . . . . . . . . . . (address of the registered person) having Goods and Services Tax Identification Number . . . . . . . . . . . . . . . . . . . . . .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.

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 hereinbefore written by the undertaker(s)

Signature(s) of undertaker(s).

Date :

Place :

Witnesses

Date

Place

Accepted by me this . . . . . . . . . . . . . . . . . . . . . . day of . . . . . . . . . (month). . . . . . . . . . . . . . . (year)

. . . . . . . . . . . . . . . . . . . . . . of

. . . . . . . . . . . . . . . . . . . . . . Designation)

for and on behalf of the President of India