Thursday, 20 July 2017

GST RFD-11


                                                                 

 

FORM GST RFD-11

                    Furnishing of bond or letter of Undertaking for exports of goods or services

1.GSTIN

 

2.Name

 

3.Indicate the type of documents furnished

 

Bond

Letter of Undertaking  

4.Details of bond furnished :

Sr. No

Reference No. Of Bank Guarantee

Date

Amount

Name of Bank and Branch

     1

                               2

            3

         4

            5

 

 

 

 

 

 

 

 

 

 

Note-Hard copy of the bank guarantee and bond shall be furnished to the jurisdictional officer.

 

5. Declaration –

(i)          The above mention bank guarantee is submitted to secure the integrated tax payable on export of goods or services.

(ii)         I undertake renew the bank guarantee well before its expiry. In case I/We fail to do so the department will be at liberty to get the payment from the bank against the bank guarantee.

(iii)        The department will be at liberty to invoke the bank guarantee provided by us to cover the amount integrated tax payable in respect of export of goods or services.

 

Signature of Authorized Signatory

 

 

Name

Designation:

Date:


 

Bond for export of goods or services without payment of integrated tax

(See rule 96)

I/We, _________________of_______________ hereinafter called "obligor(s)", am/are held and firmly bound to the president on India (hereinafter called "the president") in the sum of…………………………..rupees to be paid to the president for which payment will and truly to be made.

I/We jointly and severally bind myself/ourselves and my/our respective heirs/ executors/ administrators/ legal representatives/successors and assigns by these presents; dated this ___ day of __________;

WHEREAS the above bounden obligor has been permitted from time to time to supply goods or services for export out of India without payment of integrated tax;

And whereas the obligor desires to export goods or services in accordance with the provisions of clause (a) of sub-section (3) of section 16;

 

AND WHEREAS the Commissioner has required the obligor to furnish bank guarantee for an amount of………………………………………….rupees endorsed in favour of the president and whereas the obligor has furnished such guarantee by depositing with the commissioner the bank guarantee as afore mentioned;

 

The condition of this bond is that the obligor and his representatives observe all the provisions of the Act in respect of export of goods or services, and rules made thereunder;

 

And if the relevant and specified goods or services are duly exported;

AND if all dues of integrated tax all other lawful charges, are duly paid to the government along with interest, if any, within fifteen days of the date of demand thereof being made in writing by the said officer, this obligation shall be void;

 

OTHERWISE and on breach or failure in the performance of any of this condition, the same shall be in full force and virtue:

 

AND the president shall, at his option, be competent to make good all the loss and damages, from the amount of bank guarantee or by endorsing his rights under the above written bond or both;

 

I/We further declare that this bond is given under the orders of the government for the performance of an act in which the public are interested;

 

IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the obligor(s).

 

Signature(s) of obligor(s).

Date:

Place:

 

Witnesses

 

S No

Name

Address

Occupation

Signature

 

 

 

 

 

 

 

 

 

 

 

Date:

Place:

 

 

                 Accepted by me this.................... Day of..................... (Month).................. (Year)

                                                                                    

 

 

(Designation)

                                  For and on behalf of the President of India.".

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Letter of Undertaking for export of goods or services without payment of integrated tax

(See rule 96)

To

 

The President of India (hereinafter called the "President"), acting through the proper officer

I/We ______________________, Director of _______________________________ (address of registered person) having goods & services tax identification number _________________, hereinafter called "the undertaker(s) including my/our respective heirs, executors/ administrators, legal representatives/successors and assigns by these presents, hereby jointly and severally undertake on this ___ day of _______ to the president

 

a)   To export the goods or services supplied without payment of integrated tax within time specified in sub-rule(9) of rule 96;

 

b)   To observes all the provisions of the goods and services tax act and rules made thereunder, in respect of export of goods or services;

 

c)   Pay the integrated tax, thereon in the event of failure to export the goods or services, along with an amount equal to eighteen percent interest per annum on the amount of tax not paid, from the date of invoice till the date payment,

 

I/We declare that this undertaking is given under the orders of the proper officer for the performance of enacts in which the public are interested.

 

IN THE WIRNESS THEREOF these presents have been signed the day hereinbefore written by the undertaker(s)

 

 

Signature(s) of undertaker(s).

 

Date: 18-07-2017

Place: HYDERABAD

 

 

Witnesses

S No

Name

Address

Occupation

Signature

 

 

 

 

 

 

 

 

 

 

 

 

Date:

Place:

 

Accepted by me this.................... Day of..................... (Month).................. (Year)

 

 

 

………………………………………of

……………………………..… (Designation)

For and on behalf of the President of India



--
With Regards,
Kondapaneni Mallikarjuna
Eswaraiah & Co
Chartered Accountants

GST – EXPORT PROCEDURE UNDER BOND OR LETTER OF UNDERTAKING


Rule 96 A of the CGST Rules provides for Refund of Integrated Tax paid on export of goods or services under bond or Letter of Undertaking as below:-

 

(1)        Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of —

a.   fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or

 

b.   fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.

 

(2)        The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.

 

(3)        Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.

 

(4)        The export as allowed under bond or Letter of Undertaking withdrawn in terms of subrule (3) shall be restored immediately when the registered person pays the amount due.

 

(5)        The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.

 

(6)        The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.";

 

Extract of concern Notification on bond

 

The bond to be furnished for exports is a running bond (with debit / credit facility) or a one-time bond (separate bond for each consignment / export). It is observed consignment wise bond would be a significant compliance burden on the exporters. It is directed that the exporters shall furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter shall ensure that the outstanding tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability.

 

FORM RFD -11 under rule 96A of the CGST Rules requires furnishing a bank guarantee with bond. Field formations have requested for clarity on the amount of bank guarantee as a security for the bond. In this regard it is directed that the jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the track record of the exporter. If Commissioner is satisfied with the track record of an exporter then furnishing of bond without bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15% of the bond amount.

 

As regards LUT, it is clarified that it shall be valid for twelve months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond. Exports may be allowed under existing LUTs/Bonds till 31st July 2017. Exporters shall submit the LUTs/bond in the revised format latest by 31st July, 2017.

 

It is further stated that the Bond/LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of tax payers to respective authority is implemented.



--
With Regards,
Kondapaneni Mallikarjuna
Eswaraiah & Co
Chartered Accountants

Monday, 10 July 2017

SGST, CGST & IGST Applicability with Examples

SGST, CGST & IGST Applicability with Examples

In case the supply of goods or services is done INTRA STATE (LOCALLY) i.e. the place of consumption rules provide that local GST needs to be applied for the transaction, then the supplier would charge dual GST i.e. SGST and CGST at specified rates on the supply.

Ex.
Basic value charged for supply of goods or services        10,000
Add: CGST @8%                                                             800
Add: SGST @8%                                                             800
                                                                                ----------
Total price charged for local supply of goods or services 11,600
                                                                                ---------- 

In case the supply of goods or services is done INTER STATE i.e. the place of consumption rules provide that interstate GST (or integrated GST) needs to be applied for the transaction, then the supplier would charge IGST at specified rates on the supply.

Ex.
Basic value charged for supply of goods or services             10,000
Add: IGST @16%                                                               1,600
                                                                                     ----------
Total price charged for local supply of goods or services      11,600
                                                                                                                               -------------

Issue of verious type of documents under GST

LEGAL FRAMEWORK FOR DOCUMENTS RELATING TO SUPPY  (4 SECTIONS + 10 RULES)
SECTION
SUB-SECTION
PARTICULARS
DOCUMENTS
31
1
Registered person is required to issue Tax Invoice before or at the time of removal of goods.
TAX INVOICE FOR GOODS

2
Registered person is required to issue Tax Invoice before or within 30 days from the date of providing of services.
TAX INVOICE FOR SERVICES

3(a)
Revised invoice from the effective date of registration till the issuance of certificate of registration.
REVISED INVOICE

3(b)
Tax invoice is not required to be issued if value is less than Rs. 200/-


3(c)
Bill of Supply instead of Tax Invoice is required to be issued in case of Exempted Supply and supply under composition scheme
BILL OF SUPPLY

3(d)
At the time of receipt of Advance, person is required to issue Receipt Voucher.
RECEIPT VOUCHER

3(e)
if Supply not made against advance receipt, then person is required to issue Refund Voucher.
REFUND VOUCHER

3(f)
Invoice will be issued by recipient if supply received from UNREGISTERED DEALER OR UNDER RCM.
INVOICE AS RECIPIENT

3(g)
payment voucher will be issued by recipieint at the time making payment againt supply by unregistered dealer or under RCM
PAYMENT VOUCHER

4
In case of continuous supply of goods, invoice will be made at the time issuance of successive statements or payments


5
In case of continuous supply of service, (1) date of payment ascertainable (2) date of receive of payment (3) on completion of event


6
if supply of services ceases before completion, invoice is required to be issued to the extent of the supply done.


7
if the goods are sent or taken or approval, invoice shall be issued at the of acceptance or six months from the date of removal

32

Unregistered person will not collect any tax.

33

Amount of tax is required to be mentioned separately on the invoice.

34
1
Credit Note (1) Required to be declare in the return for the month during which such credit note issued                    (2) it can not be issued later than september following the end of the financial year. 


2
Debit Note (1) Required to be declare in the return for the month during which such credit note issued                    (2) it can not be issued later than september following the end of the financial year. 

RULE

PARTICULARS
DOCUMENTS
1

Information required on Tax Invoice
TAX INVOICE
2

Time limit for issuing Tax Invoice for Services (30 Days)

3

Manner of Issuing Invoice (Original + Duplicate + Triplicate) Goods (Original + Duplicate) Services

4

Information required on Bill of Supply
BILL OF SUPPLY
5

Information required on Receipt Voucher
RECEIPT VOUCHER
6

Information required on Refund Voucher
REFUND VOUCHER
7

Information required on Payment Voucher
PAYMENT VOUCHER
8

Information required on Revised Tax Invoice, Credit Note, Debit Note
REVISED INVOICE, CREDIT NOTE , DEBIT NOTE
9

Information required on Input Service Ditributor Invoice
ISD INVOICE
10

Transportation of goods without issue of Invoice
DELIVERY CHALLAN


--
With Regards,
Kondapaneni Mallikarjuna
Eswaraiah & Co
Chartered Accountants