In exercise of the powers conferred by section 54 of the CGST Act, 2017, and section 20 of the IGST Act, 2017, rule 96A(5) of the CGST Rules, 2017

and in supersession of Notification No. 16/2017-Central Tax dt. 07-07-2017

except as respects things done or omitted to be done before such supersession

Conditions for furnishing LUT

CBEC specifies conditions and safeguards for furnishing a LUT in place of a Bond by a RP who intends to supply goods or services for export without payment of integrated tax

(i) all RPs who intend to supply goods or services for export without payment of integrated tax shall be eligible to furnish a LUT in place of a bond except those who have been prosecuted for any offence under the CGST Act, 2017  or the IGST Act, 2017 or any of the existing laws in force in a case where the amount of tax evaded exceeds Rs.250 lacs;

(ii) the LUT 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 rule 96A(1) of the CGST 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 RP fails to pay the tax due along with interest, as specified rule 96A(1) of CGST, 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clause (b) of the said sub-rule, the facility of export without payment of integrated tax will be deemed to have been withdrawn and if the amount mentioned in the said sub-rule is paid, the facility of export without payment of integrated tax shall be restored.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.