GST Updates: Conditions for exports of goods or services without payment of IGST

Central Board of Excise and Customs (CBEC) has issued a notification dated 04th October, 2017 specifying the conditions and safeguards for furnishing a Letter of Undertaking (LOU) in place of bond by registered person who intends to supply goods or services for export without payment of IGST. Conditions are are as follows:

1. Those registered persons, who have been prosecuted for any offence under the CGST Act or IGST Act or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees, are not eligible to avail this facility

2. LOU shall be furnished on the letter head of the registered person, in duplicate, for a financial year in the annexure to FORM GST RFD – 11 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.

3. where the registered person fails to pay the tax due along with interest, as specified under sub-rule (1) of rule 96A of Central Goods and Services Tax Rules, 2017, within the period mentioned in clause (a) or clause (b) of the said sub-rule, the facility of export without payment of integrated tax will be deemed to have been withdrawn and if the amount mentioned in the said sub-rule is paid, the facility of export without payment of integrated tax shall be restored.

Copy of such Notification can be accessed at below link:

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