GST-Letter of Undertaking in place of a Bond

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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integrated tax will be deemed to have been withdrawn and if the amount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

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