Export Without Payment of IGST

Goods and Services Tax (GST)
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September 1, 2017

Entities involved in export of goods or services having GST Registration are allowed to export goods without payment of IGST by furnishing an export bond or Letter of Undertaking (LUT) in Form GST RFD-11.

PROCEDURE FOR APPLICATION OF LETTER OF UNDERTAKING NUMBER:

According to the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11. The following types of persons registered under GST will be allowed to submit a letter of undertaking and undertake export transactions.

Status holder as specified in the Foreign Trade Policy; or
Entities that have received the due foreign inward remittances amounting to a minimum 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.

Letter of Undertaking will be valid for a period of twelve months from the date of submission. If the exporter fails to comply with the conditions of the Letter of Undertaking, the privileges could be revoked and the exporter would be required to furnish a bond.

We are noting below the list of documents that the officials are usually asking at the time of submission ofLetter of Undertaking for export without payment of IGST.

Letter of Undertaking (on a stamp paper of Rs 100-Signed and stamped by directors/partners/proprietor)
GST RFD-11 (on letter head-Signed and stamped by directors/partners/proprietor)
Declaration of no offences under CGST Act, 2017 or any of the existing laws(on letter head-Signed and stamped by directors/partners/proprietor)
Foreign Inward Remittance Certificate/ Bank Realization Certificate/ Remittance Advices and EEFC Statement for preceding Financial Year
Bank Certificate stating that inward remittance is more than 1 crore
CA Certificate confirming the figures of preceding year Export Turnover and Inward Remittance
Copy of PAN of company/firm (Signed and stamped by directors/partners)
Memorandum and Articles of Association/ Partnership Deed(Signed and stamped by directors/partners)
Copy of Importer Exporter Code Certificate(Signed and stamped by directors/partners/proprietor)
Copy of Certificate of Provisional Registration in FORM GST REG – 25(Signed and stamped by directors/partners/ proprietor)
ID Proofs of directors/partners/proprietor (PAN and Aadhar- Self Attested)
Photo ID Proof of Witnesses(Self Attested)
Rent Agreement and NOC from owner for using the premises. (If rented)
Conveyance deed-If owned (Self Attested)
Proof of address of the premises- Utility Bill/ House Tax Receipt(Self Attested)
Copy of Export Invoice(Signed and stamped by directors/partners/proprietor)
Affidavit regarding fulfillment of conditions of Notification No. 16/2017-CT dated 07/07/2017 (on a stamp paper of Rs 100- Signed and stamped by directors/partners/proprietor)