Circular No.: 40/14/2018-GST
Date of Circular: 6th April 2018
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 16 of IGST Act: Zero-rated supplies
- CGST Rules, 2017:
- Rule 96A: Export under Bond or Letter of Undertaking (LUT)
- Relevant Notifications:
- Notification No. 37/2017-Central Tax dated 4.10.2017
- Earlier Circular Referred:
- Circular No. 8/8/2017-GST
Summary of Circular:
This circular clarifies procedural issues regarding submission and acceptance of LUTs (Letter of Undertaking) filed by exporters on the GST portal, particularly in view of technical difficulties faced by officers in accessing them.
- Online Submission of LUT – Deemed Acceptance:
- Exporters shall submit FORM GST RFD-11 electronically on the GST portal.
- Once an Acknowledgement Reference Number (ARN) is generated, the LUT is deemed accepted, and no physical submission is required.
- No Physical Documents Needed:
- Exporters are not required to visit jurisdictional offices or submit any hard copy of the LUT or related documents.
- Rejection Clause – Ineligibility Risk:
- If it is later found that the exporter was not eligible to furnish an LUT under Notification No. 37/2017-CT, the LUT will be considered rejected ab initio (from the beginning).
- Exporters ineligible for LUT must furnish a bond with bank guarantee instead.
- Trade Notice Instruction:
- All field formations are instructed to issue trade notices for uniform implementation of this clarification.
Source: Circular No.: 40/14/2018-GST
