GST Export Process | Full Fledged Video on GST Export Process
This Video explains the GST export procedure in a simple and effective manner.
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
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 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-
(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.
e exporters shall furnish a running bond, in case he is required to
furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in
the export based on estimated tax liability as assessed by the exporter himself. The exporter shall
ensure that the outstanding tax liability on exports is within the bond amount. In case the bond
amount is insufficient to cover the tax liability in yet to be completed exports, the exporter shall
furnish a fresh bond to cover such liability.
FORM RFD -11 under rule 96A of the CGST Rules requires furnishing a bank guarantee
with bond. Field formations have requested for clarity on the amount of bank guarantee as a
security for the bond. In this regard it is directed that the jurisdictional Commissioner may decide
about the amount of bank guarantee depending upon the track record of the exporter. If
Commissioner is satisfied with the track record of an exporter then furnishing of bond without
bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15%
of the bond amount. As regards LUT, it is clarified that it shall be valid for twelve months. If the exporter fails
to comply with the conditions of the LUT he may be asked to furnish a bond.Exports may be
allowed under existing LUTs/Bonds till 31st July 2017. Exporters shall submit the LUTs/bond in
the revised format latest by 31st July, 2017.
GST Export Process | GST Export Procedure | Bond in Export | LOU in Export
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