Central Tax Circulars

CGST Circular 40/2018

To,

The Principal Chief Commissioners / Chief Commissioners / Principal
Commissioners/ Commissioners of Central Tax (All) / The Principal Director
Generals / Director Generals (All)

Madam/Sir,

Subject: Clarification on issues related to furnishing of Bond/Letter of
Undertaking for exports – Reg.

1) Various communications have been received from the field formations and
exporters that
the LUTs being submitted online in FORM GST RFD-11 on the common portal
are not visible to the jurisdictional officers of Central Board of Indirect
Taxes and Customs and of a few States. Therefore, a need was felt for a
clarification regarding the acceptance of LUTs being submitted online in
FORM GST RFD-11.

2) Accordingly, in partial modification of Circular No. 8/8/2017-GST dated
4th October,
2017, sub-paras (c), (d) and (e) of para 2 of the said Circular are hereby
replaced by the following:

“c) Form for LUT: The registered person (exporters) shall fill and
submit FORM
GST RFD-11 on the common portal. An LUT shall be deemed to be accepted
as soon as an acknowledgement for the same, bearing the Application
Reference Number (ARN), is generated online.

d) Documents for LUT: No document needs to be physically
submitted to the
jurisdictional office for acceptance of LUT.

e) Acceptance of LUT/bond: An LUT shall be deemed to have been
accepted as
soon as an acknowledgement for the same, bearing the Application Reference
Number (ARN), is generated online. If it is discovered that an exporter
whose LUT has been so accepted, was ineligible to furnish an LUT in place of
bond as per Notification No. 37/2017-Central Tax, then the exporter’s LUT
will be liable for rejection. In case of rejection, the LUT shall be deemed
to have been rejected ab initio.”

3) It is requested that suitable trade notices may be issued to publicize
the contents of this
Circular.

4) Difficulty, if any, in the implementation of the above instructions may
please be brought
to the notice of the Board. Hindi version would follow.