Rule 96A of CGST Rules 2017: Export of goods or services under bond or Letter of Undertaking

Provisions under Rule 96A of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Export of goods or services under bond or Letter of Undertaking”, are as under:

CGST Rule 96A: Refund of integrated tax paid on [text omitted from 01/02/2019: refer Note 4(b)] Export of goods or services under bond or Letter of Undertaking (Chapter-X: Refund) [rule 96A inserted from 01/07/2017: refer Note 1]

(1) 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 sub-section (1) of section 50 within a period of-

(a) fifteen days after the expiry of three months, or such further period as may be allowed by the Commissioner [text inserted from 18/10/2017: refer Note 2], from the date of issue of the invoice for export, if the goods are not exported out of India; or

(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, 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 or in Indian rupees, wherever permitted by the Reserve Bank of India [text inserted from 01/02/2019: refer Note 4(a)].

(2) The details of the export invoices contained in FORM GSTR 1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.

Provided that where the date for furnishing the details of outward supplies in FORM GSTR 1 for a tax period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR 3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs: [first proviso inserted from 28/10/2017: refer Note 3]

Provided further that the information in Table 6A furnished under the first proviso shall be auto-drafted in FORM GSTR 1 for the said tax period. [second proviso inserted from 28/10/2017: refer Note 3]

(3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.

(4) The export as allowed under bond or Letter of Undertaking withdrawn in terms of sub-rule (3) shall be restored immediately when the registered person pays the amount due.

(5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.

(6) The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.

Amendments History:

1. Rule 96A inserted from 01/07/2017 vide Notification 15/2017.

2. In clause (a) of sub-rule (1) the text ‘or such further period as may be allowed by the Commissioner’ inserted from 18/10/2017 vide Notification 47/2017.

3. First and Second Provisos to sub-rule (2) inserted from 28/10/2017 vide Notification 51/2017.

4. Amendments from 01/02/2019 vide Notification 3/2019:

(a) In clause (b) of sub-rule (1) the text ‘or in Indian rupees, wherever permitted by the Reserve Bank of India’ inserted.

(b) The text ‘Refund of integrated tax paid on Export’ in the Rule Heading substituted with the text ‘Export’.

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