August 15, 2017

Export Procedure under GST

CA. Sachin Jindal

Introduction:

We will understand following:

Method of Export under GST
Detail of Export Procedures under Bond/LUT
Step by Step approach for Export
Documents required

Method of Export under GST

There are two method of export has been defined under IGST Act .

Export on payment of IGST
Export on Non Payment of IGST

Export under Non – Payment of IGST can be done as follows

Export against Letter of Undertaking (LUT)
Export against Bond with Bank Gurantee

Purpose of Bond or LUT:

The purpose of Bond or L U T is to bind Exporters to pay tax along with interest under GST.

In the case of Export of Goods, Exporters bind himself to pay tax along with interest with in days 15 after the expiry of 3 months from the date of issue of the invoice for export, if the goods are not exported out of India.

In the case of Export of Services, Exporters bind himself to pay tax along with interest with in 15 days after the expiry of 1 year, or any extended period, 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.

Who can issue:

Following person can export against L U T

Status Holder in Paragraph 5 of the Foreign Trade Policy 2015-2020.
Registered Person received foreign inwards Remittances – Amounting minimum of 10% of Export Turnover which should not be less than 1 cr in preceding financial Year.
Registered person not prosecuted for any offence under CGST act / any existing law where tax evaded not exceed 2.5 cr

Any registered person who cannot export against L U T, can export against BOND.

Steps for Export:

Step – 1 – Preparation of Bond / L U T. – Preparation of Bond or L U T by exporter in the prescribed format.

Step – 2 – Prepare GST RFD – 11 – Filling of GST R F D – 11 along with all relevant details before initiating Export transaction.

Step – 3 – Furnishing GST R F D – 11 – Furnishing RFD – 11 along with bond or L U T to J C/ A C/ D C.

Step – 4– Doing Export Transaction – Doing Export Transaction and Creating Export Invoices with endorsement

Step – 5 – Furnishing Monthly Return – Furnishing monthly Return with in due dates and claim refund of available ITC.

Documents required for Bond / LUT

List of Document required for Export under GST

Specific Documents Required for export under GST
Letter of undertaking	BOND
Letter of under taking (in prescribed format) on company letter head duly signed by competent person	Bond (in prescribed format) on Rs. 100 non judicial stamp paper dully signed. The bond cover amount of tax involved.
Certificate of status holder as per para 5 of trade policy 2015-2020	Bank Gurantee of 15% of the bond amount in the name of commissioner(GST) state tax, department of trade & taxes, Govt of NCT, New Delhi (Valid for one year)
Bank Certificate or Bank realisation certificate mentioning that the exporter has received the due foreign remitance amounting to minimum of 10% of export turnover which should not be less than 1 cr.
Undertaking / declaration on letter head that he has not been prosecuted for any offence under GST or any other earlier law
Common Document
Request letter containing figure of export turnover of last year or estimated export turnover on the letter head for acceptance of GST RED – 11.
Form GST RED – 11 duly filled and signed with seal on company / firm letter head.
Copy of GST certificate.
Copy of IEC Code.
Copies of Returns(DVAT-16) of all four quarters 2016-17 or GSTR – 3 of all the month of preceding year.
Export Bill/Invoice/ Performa Invoice.

Export Procedure under GST

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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