Recent Update on Export of Goods or Services Under GST Regime
The Government relaxes bond/ letter of undertaking requirement for export of goods without payment of IGST
Rule 96A of Central Goods and Services Tax Rules, 2017 provides that in case of export of goods or services without payment of GST, the exporter has to furnish a bond or letter of undertaking (LUT) in form RFD-11. This is also required in the case of provision of goods or services to SEZ units/ developer.
Considering the difficulties faced by exporters, the Government has issued notification no. 16/2017- Central Tax and circular no. 4/4/2007-GST, both dated 07 July, 2017 to clarify certain aspects relating to bond/ LUT. The clarifications are summarised below:Continue reading
1.IEC code means Import Export Code. As per the Foreign Trade Policy (FTP) in India, every importer and exporter is required to get IEC code to start Import export from India. Without IEC code, no importer and exporter are authorized to do import export business.
2. As per the trade circular, there are two kinds of categories to be dealt with:
a) Person registered under GST
b)Person not registered under GSTContinue reading