Export Documents Under GST

GST Export Documents 

This article is a ready reckoner for the successful facilitation of EXPORTS as many exporters have apprehensions about the requisite EXPORT DOCUMENTS under newly introduced Goods and Services Act, 2017, documents required for export of goods under GST, proof of export under gst, is gst required for export, export with payment of igst in GSTR-3B, documents required to export from India, GST registration for GST on export of services below 20 lakhs, conditions for export of goods under GST, GST registration mandatory for export of services, documents required for export to nepal under gst, documents required for gst refund in case of export of services.

Let us first understand what exactly is meant by EXPORTS under Goods and Services Act, 2017.

According to Section 16 of IGST:

(1) “zero rated supply” means any of the following supplies of goods or services or both, namely:–

(a) export of goods or services or both; or

(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

(2) A registered person making zero rated supply shall be eligible to claim refund under either of the following options:-

a) he may supply goods or services or both under bond or Letter of Undertaking, without payment of integrated tax and claim refund of unutilised input tax credit; or

(b) he may supply goods or services or both, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied.

Let’s understand above mentioned provisions:

Export can be made either:

•   on production of LUT / Bond ,or

•   with payment of GST,

•   In case of IGST payment,

•   the said payment can be claimed as Refund in the Return and

•   payment means after adjustment of INPUT TAX CREDIT

In case of Non GST payment, Production of LUT / Bond is mandatory.

WHO CAN OPT FOR LETTER OF UNDERTAKING (LUT)?

LUT can be filed by an exporter who is :

•   either a status holder, or

•   has received convertible foreign exchange @ 10% of turnover or minimum of Rs. 1 crores in the preceding financial year

and has not contravened any provision of law which attracts evasion of tax of at least Rs. 2.5 crores.

Remember that non-contravention of any provision of law which attracts evasion of tax of at least Rs. 2.5 crores. is a mandatory condition in order to opt LUT.

If an assessee do not fulfill the above conditions, then he can file Bond along with Bank Guarantee.

Now comes the documentation required for facilitation of EXPORTS:

Circular No. 4/4/2017-GST says that every registered person exporting goods or services without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.

Therefore, As per Department Instruction , For filing LUT, the following should be filed:

(i)  Request Letter on Letter Head,

(ii) GST RFD-11,

(iii) Letter of Undertaking on Letter Head,

(iv) Certificate of status holder or Bank Certificate mentioning the facts that the exporter has received the due foreign remittance amounting to 10% of turnover which would not be less than Rs. 1 crore

(v) Undertaking on Letter Head that the exporter had not been prosecuted for an offence where tax evaded exceeded Rs. 2.5 crores.

(vi) Documents required for export of services under GST are GST Registration Certificate   (vii) IEC Code   (viii) Copy of return filed under DVAT or Service tax for the preceding financial year

(ix) Exports Bill / invoices.

 After filing of these documents, on scrutiny, deficiency shall be informed and after proper satisfaction, Letter of Acceptance shall be issued and that shall be used for each export subsequently.

As per Department Instruction , For filing Bond and export procedure under GST, the following should be filed:

(i) Request Letter on Letter Head,

(ii) GST RFD-11,

(iii) Bond on Rs. 100/- Stamp Paper

(iv) GST Registration Certificate

(v) IEC Code

(vi) Copy of return filed under DVAT or Service tax for the preceding financial year

(vii) Exports Bill / invoices.

(viii) Bank Guarantee of 15% of tax involved

Bond and Bank Guarantee should be in favor of Commissioner, State Tax, Department of Trade & Taxes, Govt. of NCT of Delhi.

After filing of these documents required for export, on scrutiny, deficiency shall be informed and after proper satisfaction, Bond shall be issued and that shall be used for the facilitation of that export.

Now, here are some common points for LUT and Bond:

•   LUT / Bond would be filed by an exporter of an estimated tax liability which shall be valid for a particular financial year.

•   LUT / Bond would be a running document with debit and credit amount as per billing and clearing system.

•   If conditions of Exports are not fulfilled, then exporter would be liable for consequential Tax and interest and LUT / Bond would become in-operative and further be automatically active on payment of due tax and interest.

•   LUT / Bond amount can be up-graded at any time at the option of the exporter.

•   This LUT / Bond formalities has to be complied every year in the beginning for full financial year.

•   This LUT / Bond is to be filed annually on Common Portal but since the facility is not available on portal so presently it can be filed with jurisdictional commissioner which is tabulated in the table below: