Indian Tax Solution

Central Tax Notification No. 16/2017, DATE - 7th July, 2017

Central Tax Notification No. 16/2017, DATE - 7th July, 2017

SUBJECT :- LOU in place of a bond for export without payment of IGST- Conditions.

G.S.R. 848(E). :- In exercise of the powers conferred by sub-rule (5) of rule 96A of the Central Goods and Services Tax Rules, 2017, the Central Board of Excise and Customs hereby specifies the conditions and safeguards for the registered person who intends to supply goods or services for export without payment of integrated tax, for furnishing a Letter of Undertaking in place of a Bond.

i. The following registered person shall be eligible for submission of Letter of Undertaking in place of a bond:-

(a) a status holder as specified in paragraph 5 of the Foreign Trade Policy 2015­- 2020; or

(b) who has received the due foreign inward remittances amounting to a mini mum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year,

and he has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

ii. The Letter of Undertaking shall be furnished in duplicate for a financial year in the annexure to FORM GST RFD – 11 referred to in sub-rule (1) of rule 96A of the Central Goods and Services Tax Rules, 2017 and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorized by such working partner or Board of Directors of such company or proprietor on the letter head of the registered person.

[F. No. 349/74/2017– GST]

(Dr. Sreeparvathy S. L.)

Under Secretary to the Government of India

REGD. NO. D. L.-33004/99

The Gazette of India


PART II-Section 3-Sub-section (i)


NEW DELHI, MONDAY, JULY 10, 2017/ASADHA 19, 1939


(Department of Revenue)



New Delhi, the 10th July, 2017

G.S.R. 854(E).-In the notification of the Government of India, in the Ministry of Finance, Department of Revenue, No. 16/2017-Central Tax , dated the 7th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), videnumber G.S.R. 848(E), dated the 7th July, 2017,-

in line 6, for "paragraph 5" read "paragraphs 3.20 and 3.21".

[F. No. 349/74/2017-GST (Pt)]

Dr. SREEPARVATHY S. L., Under Secy.

Document Option

Editor's Column

Huge relief for manufacturers -No GST payments on advances received for supplying goods

On Wednesday, the Central Government spared businesses from paying GST on advance amounts they have received for goods which are to be supplied later in the future. The step was aimed to help clear the confusion over tax liabiliti ...