Background
Rule 96A of the CGST Rules, 2017 provides the mechanism for registered persons to export goods or services without payment of integrated tax by furnishing a bond or Letter of Undertaking (LUT) in FORM GST RFD-11. This rule facilitates zero-rated supplies while ensuring tax compliance through legally binding commitments.
Applicability
Persons Covered:
Supplies Covered:
Compliance Requirements under Rule 96A:
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 in FORM GST RFD-11 to the jurisdictional Commissioner.
Binding Commitment:
The registered person binds himself to pay the tax due along with interest specified under sub-section (1) of section 50 within the following periods:
(a) For Export of Goods
Fifteen days after the expiry of three months (or such further period as may be allowed by the Commissioner) from the date of issue of the invoice for export.
Condition: If the goods are not exported out of India.
(b) For Export of Services
Time Limit: 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.
Condition: If the payment of such services is not received by the exporter in convertible foreign exchange.
Transmission to Customs
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.
Confirmation from Customs
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 Customs system.
Extended GSTR-1 Deadline
Where the date for furnishing FORM GSTR-1 has been extended under section 37:
Auto-Drafting
The information in Table 6A furnished under the first proviso shall be auto-drafted in FORM GSTR-1 for the said tax period.
Trigger Conditions:
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 sub-rule (1):
Consequences:
Restoration of Export Facility
The export facility withdrawn under shall be restored immediately when the registered person pays the amount due.
Board’s Power to Specify Conditions
The Board, by way of notification, may specify:
Purpose: Determines eligibility criteria and procedural requirements for using LUT instead of bond.
The provisions of sub-rule (1) shall apply, mutatis mutandis (with necessary changes), in respect of:
Effect: All provisions of sub-rule (1) apply to SEZ supplies with necessary modifications to suit the nature of SEZ transactions.
Penalty & Punishment
Any registered person failing to furnish a bond or LUT shall not be able to avail the option to supply goods or services for export without payment of IGST
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