Executive Summary:
This notification from the Central Board of Excise and Customs specifies conditions and safeguards for registered individuals exporting goods or services without integrated tax payment. It allows eligible persons to furnish a Letter of Undertaking (LUT) instead of a bond. The notification refers to sub-rule 5 of rule 96A of the Central Goods and Services Tax Rules, 2017. It also defines eligibility criteria based on Foreign Trade Policy and tax compliance.
Key Points / Main Content:
Eligibility for Letter of Undertaking (LUT):
* Registered persons can submit an LUT instead of a bond if they intend to supply goods or services for export without paying integrated tax.
* Eligibility criteria include:
* Holding status as specified in paragraph 5 of the Foreign Trade Policy 2015-2020; or
* Having received foreign inward remittances amounting to a minimum of 10% of the export turnover (not less than one crore rupees) in the preceding financial year.
* Not being prosecuted for any offense under the Central Goods and Services Tax Act, 2017, or existing laws, where the tax evaded exceeds two hundred and fifty lakh rupees.
Letter of Undertaking (LUT) Requirements:
* The LUT must be furnished in duplicate for each financial year.
* It should be in the annexure to FORM GST RFD-11, as referred to in sub-rule 1 of rule 96A of the Central Goods and Services Tax Rules, 2017.
* The LUT must be executed on the registered person's letterhead.
* Authorized signatories include the working partner, Managing Director, Company Secretary, proprietor, or a person duly authorized by the working partner or Board of Directors.
Impact Analysis:
Registered Persons Intending to Export:
* Impact: Defines eligibility criteria for using a Letter of Undertaking (LUT) instead of a bond for exporting goods or services without integrated tax payment.
* Action Required: Determine if they meet the eligibility criteria (status holder or remittance threshold). If eligible, furnish the LUT in duplicate using FORM GST RFD-11.
Central Board of Excise and Customs:
* Impact: Responsible for specifying the conditions and safeguards for the LUT in place of a bond.
* Action Required: Ensure the implementation and monitoring of the specified conditions and safeguards.
Tax Authorities:
* Impact: Must verify the eligibility of registered persons submitting LUTs and monitor compliance.
* Action Required: Review submitted LUTs and verify the registered person's compliance with the specified conditions, including foreign remittance amounts and absence of prosecution for tax evasion.
Key Entities Referenced
Central Board of Excise and Customs: An organization under the Department of Revenue, Ministry of Finance, responsible for specifying conditions and safeguards related to tax regulations.
Central Goods and Services Tax Rules, 2017: A set of rules pertaining to the Goods and Services Tax (GST) in India, specifically rules 96A and FORM GST RFD 11.
Foreign Trade Policy 2015-2020: A government policy related to import and export regulations. Paragraph 5 defines 'status holder'.
Central Goods and Services Tax Act, 2017: A central act related to the Goods and Services Tax (GST) in India, specifically section 12 of 2017.
New Delhi: The location of the Ministry of Finance and the place of publication for the notification.
Ministry of Finance: The government ministry responsible for revenue and financial matters, including the Central Board of Excise and Customs.
Integrated Tax: Tax for export without payment
Mayapuri, New Delhi: Location of Government of India Press
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ििििवववव(cid:7004)(cid:7004)(cid:7004)(cid:7004)तत तत मममम(cid:7074)(cid:7074)ंं(cid:7074)(cid:7074)ंं ााााललललयययय
((((ररररााााजजजज(cid:7021)(cid:7021)(cid:7021)(cid:7021)वव वव ििििववववभभभभाााागगगग))))
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((((जजजजीीीीएएएएससससटटटटीीीी ननननीीीीिििितततत खखखखडडंंडडंं ))))
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:7408)द(cid:7016) ली, 7 जुलाई, 2017
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िनयम 96क के उपिनयम (5) (cid:7367)ारा (cid:7079)द(cid:7004) त शि(cid:6989) तय(cid:7298) का (cid:7079)योग करत े (cid:7263)ए ऐस े रिज(cid:7021) (cid:7069)ीकृत (cid:7018) यि(cid:6989) त के िलए, िजसका एक(cid:7409)कृत
कर का संदाय (cid:7408)कए िबना िनया(cid:6981)त के िलए माल या सेवा(cid:7312) का (cid:7079)दाय करन े का आशय ह,ै बंधप(cid:7074) के (cid:7021)थ ान पर प(cid:7407)रवचन प(cid:7074)
देने हते ु शत (cid:7288)और र(cid:6979)ोपाय िविन(cid:7416)द(cid:7020) ट करता ह ै।
िन(cid:7013) निलिखत रिज(cid:7021) (cid:7069)ीकृत (cid:7018) यि(cid:6989) त बंधप(cid:7074) के (cid:7021)थ ान पर प(cid:7407)रवचन प(cid:7074) (cid:7079)(cid:7021) ततु करने के पा(cid:7074) ह(cid:7298)गे:--
(क)(cid:32) िवदेश (cid:7018) यापार नीित, 2015-2020 के परै ा 5 म (cid:7286) यथािविन(cid:7416)द(cid:7020) ट कोई (cid:7079)ाि(cid:7021) थित धारक; या
(ख)(cid:32) िजसने पूव(cid:6981)वत(cid:7278) िव(cid:7004) तीय वष(cid:6981) म(cid:7286) िनया(cid:6981)त आवत(cid:6981) का (cid:7008) यनू तम 10 (cid:7079)ितशत के बराबर देय ऐसा िवदेशी आवक
िव(cid:7079)ेषण (cid:7079)ा(cid:7009) त (cid:7408)कया ह,ै जो एक करोड़ (cid:7271)पए से कम का नह(cid:7277) होना चािहए;
और उसे के(cid:7008) (cid:7076)ीय माल और सेवा कर अिधिनयम, 2017 (2017 का 12) के अधीन या िव(cid:7378)मान िविध म (cid:7286) स े (cid:7408)कसी िविध के
अधीन (cid:7408)कसी ऐसे अपराध के िलए अिभयोिजत नह(cid:7277) (cid:7408)कया गया ह,ै जहा ं अपवंचन (cid:7408)कए गए कर क(cid:7409) रकम दो करोड़ पचास
लाख (cid:7271)पए से अधीक ह ै।
4234 GI/2017 (1)
(cid:32)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(i)(cid:32) (cid:7408)कसी िव(cid:7004) तीय वष(cid:6981) म(cid:7286), के(cid:7008) (cid:7076)ीय माल और सेवा कर िनयम, 2017 के िनयम 96क के उपिनयम (1) म (cid:7286) िन(cid:7416)द(cid:7020) ट
प(cid:7407)रवचन प(cid:7074), दो (cid:7079)ितय(cid:7298) म(cid:7286), (cid:7079)(cid:7272)प जीएसटी आरएफडी-11 के उपाबंध म(cid:7286) (cid:7408)दया जाएगा और इसे स(cid:7408)(cid:7059)य भागीदार, (cid:7079)बंध
िनदेशक या कंपनी सिचव या (cid:7021) व(cid:7004) वधारी (cid:7367)ारा या ऐस े स(cid:7408)(cid:7059)य भागीदार, ऐसी कंपनी के िनदेशक बोड (cid:6981) या रिज(cid:7021) (cid:7069)ीकृत
(cid:7018) यि(cid:6989) त के शीष(cid:6981)नामे पर के (cid:7021) व(cid:7004) वधारी (cid:7367)ारा (cid:7079)ािधकृत (cid:7018) यि(cid:6989) त (cid:7367)ारा िन(cid:7020) पा(cid:7408)दत (cid:7408)कया जाएगा ।
[फा. सं. 349/74/2017-जीएसटी]
डॉ. (cid:7088)ीपाव(cid:6981)ती एस.एल., अवर सिचव
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF EXCISE AND CUSTOMS)
NOTIFICATION
New Delhi, the 7th July, 2017
No. 16/2017–Central Tax
G.S.R. 848(E).—In exercise of the powers conferred by sub-rule (5) of rule 96A of the Central Goods and
Services Tax Rules, 2017, the Central Board of Excise and Customs hereby specifies the conditions and safeguards for
the registered person who intends to supply goods or services for export without payment of integrated tax, for
furnishing a Letter of Undertaking in place of a Bond.
i. The following registered person shall be eligible for submission of Letter of Undertaking in place of a bond:-
(a) a status holder as specified in paragraph 5 of the Foreign Trade Policy 2015-2020; or
(b) 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.
ii. The Letter of Undertaking shall be furnished in duplicate for a financial year in the annexure to FORM GST
RFD – 11 referred to in sub-rule (1) of rule 96A of the Central Goods and Services Tax Rules, 2017 and it shall be
executed 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.
[F. No. 349/74/2017 – GST]
Dr. SREEPARVATHY S. L., Under Secy.
(cid:32)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.