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CA Final · Indirect Tax Laws · Import and Export Under GST

Sunrise Textiles Ltd, Surat, a registered person, intends to export garments to Dubai without payment of integrated tax. Under the CGST Rules, 2017, what must it do before making the export?

The exporter must furnish a bond or Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner before exporting. This binds it to pay the tax with interest if conditions are not met. Paying tax and claiming refund is a separate option, and no RBI approval is needed.

  1. AFurnish a bond or Letter of Undertaking in FORM GST RFD-11 to the jurisdictional CommissionerCorrect
  2. BPay integrated tax and later claim it back as a refund only
  3. CFile an advance ruling application with the Authority for Advance Ruling
  4. DObtain a written approval from the Reserve Bank of India for each shipment

Explanation

Rule 96A(1) requires a registered person who exports without payment of integrated tax to furnish, prior to export, a bond or Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner. Paying tax and claiming refund is the alternative route, not a condition of the LUT route. RBI approval and advance ruling are not prerequisites.

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