GST-Letter of Undertaking in place of a Bond

G.S.R….(E).- In exercise of the powers conferred by section 54 of the Central
Goods and Services Tax Act, 2017, and section 20 of the Integrated Goods and
Services Tax Act, 2017, sub-rule (5) of rule 96A of the Central Goods and
Services Tax Rules, 2017, and in supersession of notification No. 16/2017-
Central Tax, dated the 7
th July, 2017, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 848 (E),
dated the 7
th July, 2017 except as respects things done or omitted to be done
before such supersession, the Central Board of Excise and Customs hereby
specifies conditions and safeguards for furnishing a Letter of Undertaking in
place of a Bond by a registered person who intends to supply goods or services
for export without payment of integrated tax –
(i) all registered persons who intend to supply goods or services for
export without payment of integrated tax shall be eligible to furnish a
Letter of Undertaking in place of a bond except those who have been
prosecuted for any offence under the Central Goods and Services Tax
Act, 2017 (12 of 2017) or the Integrated Goods and Services Tax Act,
2017 (13 of 2017) or any of the existing laws in force in a case where the
amount of tax evaded exceeds two hundred and fifty lakh rupees;

(ii) the Letter of Undertaking shall be furnished on the letter head of the
registered person, 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 authorised by such working partner or
Board of Directors of such company or proprietor;
(iii) where the registered person fails to pay the tax due along with
interest, as specified under sub-rule (1) of rule 96A of Central Goods and
Services Tax Rules, 2017, within the period mentioned in clause (a) or
clause (b) of the said sub-rule, the facility of export without payment of
integrated tax will be deemed to have been withdrawn and if the amount
mentioned in the said sub-rule is paid, the facility of export without
payment of integrated tax shall be restored.
2. The provisions of this notification shall mutatis mutandis apply in respect
of zero-rated supply of goods or services or both made by a registered person
(including a Special Economic Zone developer or Special Economic Zone unit)
to a Special Economic Zone developer or Special Economic Zone unit without
payment of integrated tax.
[F. No. 349/74/2017-GST (Pt.) Vol.-II]
(Rohan)
Under Secretary to the Government of India

notfctn-37-central-tax-english-3

About Nitika Bansal 120 Articles
I will regularly provide update on direct tax and indirect tax

FAQS

RBI updates on Demonitisation

1. Why was the Scheme of Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500 and ₹ 1000 introduced?

(more…)

Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 6

‘Ind AS Transition Facilitation Group’ (ITFG) of Ind AS (IFRS) Implementation Committee
has been constituted for providing clarifications on timely basis on various issues related to
the applicability and/or implementation of Ind AS under the Companies (Indian Accounting
Standards) Rules, 2015, raised by preparers, users and other stakeholders.
Ind AS Transition Facilitation Group (ITFG) considered some issues received from members
and decided to issue following clarifications on November 29, 2016:
Issue 1
A debt-listed company has net worth for the last 3 years as follows: (more…)

Frequently Asked Questions (FAQs) on Withdrawal of Legal Tender Character of the Old High Denomination Bank Notes

RESERVE BANK OF INDIA
(from m.rbi.org.in)
Frequently Asked Questions

Frequently Asked Questions (FAQs) on Withdrawal of Legal Tender Character of the Old High Denomination Bank Notes

1. Why is this scheme?

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Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 5

At the 5th meeting of Ind AS Transition Facilitation Group (ITFG) held on September 19, 2016 at Mumbai, certain issues received from members were discussed. The Group after due deliberations decided to issue following clarifications1 on the issues considered at the meeting:

Issue 1

ABC Ltd. is a listed company. The net worth of ABC Ltd. as on 31st March 2014 was Rs. 200 crores. ABC Ltd. had a subsidiary, namely, XYZ Ltd. as at 31st March, 2015 whose net worth, consisting only of share capital as at that date, was Rs. 600 crores. XYZ Ltd. was incorporated in January, 2015. It was incorporated only for the purposes of its divestment. The financial statements of XYZ Ltd. were not consolidated with that of ABC Ltd. as at 31st March, 2015 in view of requirements of paragraph 11 of Accounting Standard (AS) 21, Consolidated Financial Statements.

ABC Ltd. entered into agreement with a proposed acquirer of the subsidiary, i.e., PQR Ltd., in September, 2015. The entire ownership of XYZ Ltd. was finally transferred to the said acquirer in the first fortnight of April, 2016.

In the given case, whether the ABC Ltd. is required to comply with Ind AS from the financial year 2016-17? (more…)

FAQs on Place of Supply of Goods and Service under GST

Q 1. What is the need for the Place of Supply of Goods and Services under GST?

Ans. The basic principle of GST is that it should effectively tax the consumption of such supplies at the destination thereof or as the case may at the point of consumption. So place of supply provision determine the place i.e. taxable jurisdiction where the tax should reach. The place of supply determines whether a transaction is intra-state or inter-state. In other words, the place of Supply of Goods is required to determine whether a supply is subject to SGST plus CGSTin a given State or else would attract IGST if it is an inter-state supply. (more…)

FAQs on Transitional Provisions under Goods and Service Tax

Q 1. Will the CENVAT/ITC carried forward in the last return prior to GST under earlier law be available as ITC under GST?

Ans. Yes, the registered taxable person shall be entitled to such credit and it will get credited to his electronic credit ledger – section 143. (more…)

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