The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (… — LIST OF AMENDING ACTS

To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on issues related to furnishing of Bond/Letter of Undertaking for Exports–Reg. Please refer to Notification No. 16/2017 – GST dated 7 th July, 2017 and Circular No. 2/2/2017 – – GST dated 5 th July, 2017 and Circular No. 4/4/2017 – GST dated 7 th July, 2017. A large number of communications have been received from the field formations and exporters citing variation in the interpretation of above referred notification and circulars. Therefore, in exercise of powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, following issues are being clarified hereunder: Eligibility to export under LUT: Notification No. 16/2017 – Central Tax dated 7 th July, 2017 specifies conditions to be fulfilled for export under Letter of Undertaking (LUT) in place of bond. In the extant Central Excise provisions, LUTs were limited to manufacturer exporters only. The intent of the said notification is to liberalize the facility of LUT and extend it to all kind of suppliers. It is hereby clarified that any registered person who has received a minimum foreign inward remittance of 10% of export turnover in the preceding financial year is eligible for availing the facility of LUT provided that the amount received as foreign inward remittance is not less than F. No. 349/82/2017 -GST Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs GST Policy Wing New Delhi, Dated the 11 th August, 2017 Rs. one crore. This means that only such exporters are eligible to