Finance Ministry allows exporters to show Letter of Undertaking in place of bond for GST
The Finance Ministry today announced that it will allow exporters to show Letter of Undertaking instead of a bond when exporting of goods or services or both.
Key highlights:
- Government has eased the rules on the GST for exporters
- Finance Ministry has now allowed exporters the facility of furnishing a Letter of Undertaking in place of a bond when filing for GST
- Now no bank guarantee will be required, says Finance Ministry
The government has eased the rules on the goods and service tax (GST) for exporters after many of them protested over issues faced with it. The Finance Ministry has now allowed exporters the facility of furnishing a Letter of Undertaking in place of a bond when filing GST for export of goods and services.
To facilitate exports under GST, it has been decided to allow exporters the facility of furnishing Letter of Undertaking in place of a bond.
— Ministry of Finance (@FinMinIndia) September 30, 2017
In a series of tweets the Finance Ministry said, “To facilitate exports under GST, it has been decided to allow exporters the facility of furnishing Letter of Undertaking in place of a bond.”
It further said that this facility of furnishing Letter of Undertaking, in place of a bond, is allowed to exporters for exporting goods or service or both.
“Now no bank guarantee will be required. The relevant notification for this will be issued in due course,” it added.
This move comes after exporters met with Finance Minister Arun Jaitley on Thursday this week to press for stimulus and resolution of GST related problems to boost sluggish shipments that are one reason for slowing the economy.
This facility of furnishing Letter of Undertaking, in place of a bond, is allowed to exporters for exporting goods or services or both.
— Ministry of Finance (@FinMinIndia) September 30, 2017
This was the second meeting in less than two weeks with Finance Ministry officials.
Expeditious refund of duties, deferment of filing of GST returns for six months and expansion of the ambit of the composition scheme were some of the issues which were raised by industry and exporters during the last meeting.
"In absence of clear refund timelines, the new duty drawback rates notified on September 21 have added to the woes of exporting and thus effecting their order book position. It is suggested that the transition period of drawback may be extended beyond September 30 2017 till December 31," FIEO President Ganesh Gupta said on Thursday.
Traders, particularly SMEs, are facing issues in filing returns, which is increasing their compliance burden.
(With inputs from PTI)
ALSO READ:
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
02:24 PM IST