Revised Procedure for Exports in GST

Other Important Points

Three circulars in this matter, namely Circular No. 2/2/2017 – GST dated 5th July, 2017,Circular No. 4/4/2017 – GST dated 7th July, 2017 and Circular No. 5/5/2017 – GST dated11th August, 2017, which were issued for providing clarity on the procedure to befollowed for export under bond/LUT, are revised and a consolidated in this circular no.8/8/2017-GST dated 04 October, 2017.

Eligibility to export under LUT

All registered persons who intend to supply goods or services for export without paymentof integrated tax except those who have been prosecuted for any offence under the CGSTAct or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws andthe amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees. (Unlike Notification No. 16/2017-Central Tax dated 7th July, 2017 which extended thefacility of export under LUT to status holder as specified in paragraph 5 of the ForeignTrade Policy 2015-2020 and to persons receiving a minimum foreign inward remittanceof 10% of the export turnover in the preceding financial year which was not less than Rs.one crore).

Documents for LUT

Self-declaration to the effect that the conditions of LUT have been fulfilled shall beaccepted unless there is specific information otherwise. That is, self-declaration by theexporter to the effect that he has not been prosecuted should suffice for the purposes ofNotification No. 37/2017- Central Tax dated 4 th October, 2017. Verification, if any, maybe done on post-facto basis.

Time for acceptance of LUT

LUT will be accepted within a period of three working days of its receipt along with theself-declaration as stated above by the exporter. If the LUT is not accepted within a periodof three working days from the date of submission, it shall deemed to be accepted.

Jurisdictional officer

LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner havingjurisdiction over the principal place of business of the exporter. The exporter is at libertyto furnish the LUT before either the Central Tax Authority or the State Tax Authority tillthe administrative mechanism for assigning of taxpayers to the respective authority isimplemented. Author – Pradeep Goyal Recommended Articles

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