⛳ Rule 96A of the CGST Rules, 2017 provides for procedure for refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking. 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 himself to pay the tax due along with the interest specified under section 50(1).
⛳ Central Government vide Notification No. 16/2017-Central Tax, dt. 07-07-2017 has notified conditions and safeguards for the registered person who intends to supply goods or services for export without payment of integrated tax, for furnishing a Letter of Undertaking in place of a Bond.
⛳ Letter of Undertaking in place of a bond may be submitted for following registered persons:
🌴 a status holder as specified in paragraph 5 of the Foreign Trade Policy 2015- 2020. Status Holders are business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade. All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. For granting status, export performance is necessary in at least two out of three years.
🌴 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 or under any of the existing laws in case where the amount of tax evaded exceeds Rs. 2,50,000.
⛳ The Letter of Undertaking needs to be furnished in duplicate for a financial year in the annexure to FORM GST RFD – 11 referred to in rule 96A(1) of the Central Goods and Services Tax Rules, 2017 and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor on the letter head of the registered person.
⛳ Further Central Government, vide Circular No. 2/2/2017-GST dt. 04-07-2017 has w.e.f 1st July 2017 clarified that the Bond/Letter of Undertaking 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.
[Notification No. 16/2017-Central Tax, dt. 07-07-2017]
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