Bond
or Undertaking against Bank Guarantee Allowed for Exports without IGST
[CBEC GST Wing Circular No. 02 dated 4th
July 2017]
Subject: Issues related to furnishing of Bond/ Letter
of Undertaking for Exports.
Various communications have been received from the
field formations and exporters on the issue of difficulties being faced while
supplying the goods or services for export without payment of integrated tax
and filing the FORM GST RFD -11 on the common portal (www.gst.gov.in), because
of which exports are being held up.
2. Whereas, as
per rule 96A of the Central Goods and Services Tax Rules, 2017, any registered
person availing the option to supply goods or services for export without
payment of integrated tax shall furnish, prior to export, a bond or a Letter of
Undertaking. This bond or Letter of Undertaking is required to be furnished in
FORM GST RFD-11 on the common portal. Further, Circular No. 26/2017- Customs
dated 1st July, 2017 has clarified that the procedure as prescribed under rule
96A of the said rules requires to be followed for the export of goods from 1st July,
2017.
3. Another
issue being raised by various stakeholders is that the Bond/Letter of
Undertaking is required to be given through the proper officer which is to be
furnished to the jurisdictional Commissioner as per sub-rule (1) of rule 96A of
the said rules. Taking cognizance of the fact that a large number of such
Bonds/Letter of Undertakings would be required to be filed by the registered
exporters who would be located at a distance from the office of the
jurisdictional Commissioner, it is understood that the furnishing of such
bonds/undertakings before the jurisdictional Commissioner may cause hardship to
the exporters.
4. Thus, in
exercise of the powers conferred by sub-section (3) of section 5 of the CGST
Act, 2017, it is hereby stated that the acceptance of the Bond/Letter of
Undertaking required to be furnished by the exporter under rule 96A of the said
rules shall be done by the jurisdictional Deputy/Assistant Commissioner.
5. Further, in
exercise of the powers conferred by section 168 of the said Act, for the
purpose of uniformity in the implementation of the said Act, the Bond/Letter of
Undertaking required to be furnished under rule 96A of the said rules may be
furnished manually to the jurisdictional Deputy/Assistant Commissioner in the
format specified in FORM RFD-11 till the module for furnishing of FORM RFD-11
is available on the common portal. The exporters may 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.
6. The above
specified provisions shall be applicable to all applications which have been
filed on or after 1st July, 2017. It is requested that suitable trade notices
may be issued to publicize the contents of this circular.
7. Difficulty,
if any, in the implementation of the above instructions may please be brought
to the notice of the Board.
F. No. 349/82/2017-GST