Export under GST : Eligible for LUT vide Notification No. 37/2017-Central Tax dated 4th October, 2017 may apply for release of Bond.
Initially, the option to furnish LUT in place of Bond was available only to the eligible registered person as specified in Notification No. 16/2017- Central Tax dated 7th July, 2017
However, vide Notification No. 37/2017-Central Tax dated 4th October, 2017, LUT facility is being extended to all registered persons who intend to supply goods or services for export without payment of integrated tax in place of a bond.
Subsequently, all registered persons who intend to supply goods or services for export without payment of integrated tax including the registered persons who applied for Bond prior to the issuance of Notification No. 37/2017 are opting for LUT for future Export.
This leads to a situation that unexpired Bond furnished to the GST Deptt became infructuous/ redundant . In such a case, it is being observed that assesses waits for expiry date of Bond for its release from the GST Deptt. However, as the FY 2017-18 has been closed and LUT is already being filed for future Export, the Deptt should release the Bond even if it is not expired.
Further, According to various sources we understood that the deptt is holding the same view and releasing the Bond to the assessee. Therefore, assesses are free to apply to the deptt for the release of Bond even before its expiry.
Author- CA Payal Gupta
