Traders exporting without paying IGST must submit bond promising payment

Finance ministry amends rules, introduces easy provisions for exporters

Indore : Any person registered with GST and supplying goods or services for export without paying integrated tax (IGST) will have to furnish, prior to export, a bond or a letter of undertaking to jurisdictional commissioner, binding himself to pay the tax due along with the interest.

Convener of Federation of Indian Exporters Organisation (FIEO), MP and Chhattisgarh, Suber Rampurawala informed that ministry of finance has issued notification (no. 15/2017) in this regard, making rules further to amend the Central Goods and Services Tax Rules, 2017.

The rules, known as Central Goods and Services Tax (Third Amendment) Rules, 2017, have prescribed that exporters 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 in FORM GST RFD-11 to the jurisdictional commissioner, he said.

The relevant Rule as incorporated under 96A is reproduced. 96A Refund of integrated tax paid on export of goods or services under bond or letter of undertaking to  any registered person availing the option should furnish a bond or a letter of undertaking in FORM GST RFD-11 to the jurisdictional commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of — (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.

The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system, Rampurawala informed.

Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or letter of undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.

The export as allowed under bond or letter of undertaking withdrawn in terms of sub rule (3) shall be restored immediately when the registered person pays the amount due. The board, by way of notification, may specify the conditions and safeguards under which a letter of undertaking may be furnished in place of a bond.

“The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax,” he added.

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