How do i furnish bond or letter of undertaking for exports under gst? is there any format for this?

Import / Export 1796 views 9 replies

mukesh

web development

51 Points Joined June 2008

I am a freelancer providing web development services to overseas clients In GST model law you can avail tax benefit for export of supplies in two ways - 1) pay tax on the export of goods/services & claim refund of IGST or 2) export under Bond/Letter of Undertaking without payment of IGST and claim refund of ITC. I would like to know what is the procedure involved in furnishing Bond/Letter of Undertaking? And what is the format for the same? Many thanks in advance!

Replies (9)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Pl refer circulars dated 1.7.2017 and 4.7.2017:

https://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ26-2017cs.pdf

https://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-2-gst.pdf

mukesh

web development

51 Points Joined June 2008

Thanks for your response but its diffucult to grasp fine details for a Non CA like me. It seems like unnecessary compliance for person like me who is simply providing services to overseas clients. Is it really going to be that difficult?

Register Experts

82 Points Joined February 2017

Pl refer circulars dated 1.7.2017 and 4.7.2017: https://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ26-2017cs.pdf

mukesh

web development

51 Points Joined June 2008

@ Prolinc Tech Thank you so much for your reply. It is very helpful.

One clarification - Do I need to submit FORM GST RFD-11 with bank guarantee and bond every time time I provide service to my overseas client?

Thanks!

Suchit Thakkar

2 Points Joined June 2017

thanks. Department is not clear about Bank Guarantee

mukesh

web development

51 Points Joined June 2008

There is so much confusion around on this issue. For freelancers providing web design like services to overseas clients, there should be easy way out.

sujit

Business Owner

22 Points Joined July 2017

Are our policy maker unaware of terms like 'retail export', 'e-com export' or freelancing? where each invoice value is very small amount. why these extra paper works for small service exporter. Please someone raise the issue to concern authority.

mukesh

web development

51 Points Joined June 2008

@ sujit true. ET broke news today that govt is aware of the problems faced by service exporters and may issue further clarification. Hope something good comes out in the days ahead

mukesh

web development

51 Points Joined June 2008

As expected, CBEC Clarifies Issues related to Bond/Letter of Undertaking for Exports without Payment of IGST - https://www.taxscan.in/cbec-clarifies-issues-related-bondletter-undertaking-exports-without-payment-igst/9094/

I think we can submit LUT in revised format having 12 months validity before 31st July.

Can anyone please tell where is the Commisioner's office exactly located in Delhi?

Thanks!