Requirements for application of bond/lut for export of goods

Import / Export 2705 views 35 replies

Jayant

Accounts

191 Points Joined April 2017

Requirements for Application of Bond for export of goods or services without payment of Integrated tax to GST office, Bond Department:

1. Bond Executed on Non-Judicial Rs. 500/- stamp paper of Bond amount of Rs. ______.
2. Bank Guarantee Executed with Bank on Non-Judicial Rs. 100/200/500 Stamp (15% of Bond Value)
3. Form GST RFD-11 (In duplicate, On Company Letter-Head)
4. Certificate of GST Provisional ID in Form GST REG-25 (In duplicate Self certified)
5. PAN Card copy (In duplicate Self certified)
6. Certificate of Importer-Exporter Code (IEC) issued by office of DGFT. (In duplicate Self certified)
7. Proof of Principal place of Business (Copy of Application for Registration of GST)
8. Declaration with respect of registered person (On Letter-Head). [We hereby confirm that, Directors/Partners/Proprietor of company listed below have not been prosecuted for any offence under 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.]

Requirements for Application of "Letter of Undertaking (LUT)" for export of goods or services without payment of Integrated tax to GST office (Bond Department):

1. LUT in Prescribed Format (In Duplicate)
2. Status Holder Certificate issued by office of DGFT Or "Bank Realization Certificates (BRCs, Photocopies)" of aggregate value of 1 Crore during previous financial year
3. Form GST RFD-11 (In duplicate, On Company Letter-Head)
4. Certificate of GST Provisional ID in Form GST REG-25 (In duplicate Self certified)
5. PAN Card copy (In duplicate Self certified)
6. Certificate of Importer-Exporter Code (IEC) issued by office of DGFT. (In duplicate Self certified)
7. Proof of Principal place of Business (Copy of Application for Registration of GST)
8. Declaration with respect of registered person (On Letter-Head). [We hereby confirm that, Directors/Partners/Proprietor of company listed below have not been prosecuted for any offence under 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.]

Replies (35)

Rohit Bhatia

Accounts Service

331 Points Joined May 2017

if we can't prepare letter of bond or undertaking then we can export out of India

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Joined April 2011

then u have to export after paying GST. it is for those who want exemption

Vishal Garge

73 Points Joined December 2016

GST officer is saying your Export realisation should be minimum 10% which should not be less than 1crore.

Rohit Bhatia

Accounts Service

331 Points Joined May 2017

but VAT exempt earlier,now why IGST payment on export invoice

Jayant

Accounts

191 Points Joined April 2017

Under GST, you have to pay tax on all transactions, intrastate, interstate, import and export. But on exports, if you have acquired Bond/LUT from GST office, tax on Export (IGST) levied shall be adjusted against Bond/LUT (being zero rated supply).

But export payment must be realised within 300 days from shipment date. if not, IGST amount must be paid must be paid with interest.

Correct me if wrong !!!

mukesh

web development

51 Points Joined June 2008

Hi My IEC certificate has different address than GST certificate. Do you think they will reject it? How long it would take to update IEC details if I modify today?

Jayant

Accounts

191 Points Joined April 2017

GSTIN will be issued based on PAN and state. Dont think it should be problem. But you have to simultaneously get IEC corrected from DGFT office, if you intend to take benefits from DGFT schemes.

Rajesh Karia

115 Points Joined June 2016

since our exports are small under 1Cr, the Bond/LUT won't be applicable. So if we export against payment of 18% IGST, when is the IGST to be paid ? on the time of export or during monthly GST returns?

Jayant

Accounts

191 Points Joined April 2017

You can export without any problem BUT Customs will not release Shipping Bill unless IGST is paid using either through GST portal or TR6 challan.

Jayant

Accounts

191 Points Joined April 2017

Bond is applicable for Merchant Exporters having export turnover under 1 Crore.

LUT is applicable for those who have export Turnover above 1 Crore and have realised payment above 1 crore in previous financial year.

Rajesh Karia

115 Points Joined June 2016

also in the export invoice, do you have to mention the state code of the exporting country? because in inter state sales the code is automatically picked by the billing software. I read somewhere that against the export country name you have to insert the code of the state from which you are exporting & same will reflect on the invoice. is this true?