1. Conditions for supply of goods and service falling under category of “Export 2. Rate of Exports 3. Export of goods and/or services under bond or LUT without payment of IGST 4. Self sealing in case of export of goods

1. PAGE 1 OF 4
TAX ALERT
ALERT 15/2017
ECA Corporate Partners
A-81,Ground Floor,
Sector 4, Noida-201301.
Contact no.0120-4201423
team@ecapartners.in
Export of Goods and Services Under GST.
 What are the conditions laid down for supply of goods and service falling under category of “Export” ?
Export of Goods :- According to Section 2 (5) of IGST Act export of goods means “ Taking goods outside India
to a place outside India”.
Export of Service :-When below mentioned conditions will meet only than it will be considered export of
service :
• The supplier of goods and service is located in India,
• The recipient of goods and service is located outside India,
• The place of supply of goods and service is outside India,
• The payment for such service has been received by the supplier of service in convertible foreign exchange and
• The supplier of service and the recipient of service are not merely establishments of a distinct person in accordance
with Explanation 1 in section 8.
Definition of establishment of distinct person :- When the same person has establishment in India and any other
establishment outside India than such establishments shall be treated as establishments of distinct persons.
 What will be the rate of export of goods and services in GST ?
Export of goods and services will fall under the category of “Zero Rated Supply” as per section 16 of IGST Act.
A taxable person either exporting goods or services would be eligible for refund under the following two options :
(a) Export under bond or letter of undertaking without paying IGST and claim refund of unutilized ITC.
(b) Export on payment of IGST and claim refund of such tax paid.

2. PAGE 2- OF 4
TAX ALERT
ALERT 15/2017
ECA Corporate Partners
A-81,Ground Floor,
Sector 4, Noida-201301.
Contact no.0120-4201423
team@ecapartners.in
 Export of goods and/or services upon payment of IGST:
In this option, Exporter will get the refund of IGST paid on export of goods or service. The shipping bill along
with GST Invoice filed by the exporter at the time of export would be deemed to be an application for refund of
Integrated tax (IGST) paid on the goods exported out of India. Therefore, upon filling of GSTR-3 or GSTR-3B,
the Customs department shall process the claim for refund and an amount equal to the integrated tax paid in
respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant
mentioned in his registration particulars.
 Export of goods and/or services under bond or LUT without payment of IGST:
In this option, Exporter would be eligible for refund of unutilized input tax credit on inputs and input services
procured for the purpose of export of goods/services. A registered person, who exports goods and/or services
under this option, would be required to furnish, prior to export, a bond or LUT in Form GST RFD-11 to his
Jurisdictional Deputy/Assistant Commissioner.
The Government, vide notification no. 16/2017-Central Tax dated 07th July 2017, has notified that following
registered person would be eligible for submission of LUT (valid for a Financial Year) , in place of Bond,
(a) a status holder (One Star Export House/ Two Star Export House/ Three Star Export House/ Four Star Export
House/ Five Star Export House recognized by DGFT/ Development Commissioner) as specified in paragraph 5 of
the Foreign Trade Policy 2015-2020 ; or
(b) who has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover,
which should not be less than one crore rupees, in the preceding financial year,
provided they have not been prosecuted for any office under GST Law or under any of the existing law, where the
amount of tax evaded exceeds two hundred and fifty lakh rupees.

3. PAGE 3- OF 4
TAX ALERT
ALERT 15/2017
ECA Corporate Partners
A-81,Ground Floor,
Sector 4, Noida-201301.
Contact no.0120-4201423
team@ecapartners.in
Other than above specified conditions all exporters would be required to mandatorily file Bond. Further, vide Circular
No. 4/4/2017-GST dated July 07, 2017, it has been clarified that exporters can file a running bond in From RFD-11
and shall not be required to file the separate bond for each consignment. Also, Bank guarantee would be required to
be filed along with the bond, of the value not exceeding 15% of the bond value. However, if Commissioner is
satisfied that bank guarantee is not required, then Bank Guarantee would be dispensed with.
The purpose of executing a Bond/LUT/Bank Guarantee is to bind the exporter to pay the tax along with interest, in
case of goods, within a period of 15 days after the expiry of 3 months the date of issue of export invoice, if the goods
are not exported out of India; and in case of Services, 15 days after the expiry of one year from date of issue of export
invoice, if the payment for such service is not received by the exporter.
It has also been clarified vide Clarification No 4/4/2017, dated 7th July, 2017 that, existing LUTs/ Bonds are valid till
31st July, 2017 and new LUTs/Bonds in revised format needs to be submitted latest by 31st July, 2017.
Please note that Form RFD-11 would be filed online. However, vide Circular No. 2/2/2017-GST dated July 4, 2017, it
has been clarified that until on-line facility to fill RFD-11 is not available on GSTN portal, the exporter is required to
file RFD-11 with the concerned Jurisdictional Deputy Commissioner/Assistant Commission, as may be available in
the jurisdiction. In addition to Form RFD-11, an exporter would be required to file RFD-1 (i.e. an application for
refund of unutilized credit).

4. PAGE 3- OF 4
TAX ALERT
ALERT 15/2017
ECA Corporate Partners
A-81,Ground Floor,
Sector 4, Noida-201301.
Contact no.0120-4201423
team@ecapartners.in
Self Sealing in case of export of goods:
Vide circular no. 26/2017 customs dated July1, 2017 , self sealing of goods shall be allowed subject to the following
conditions :
1. Exporter shall be under an obligation to inform the details of the premises, whether a factory or warehouse or any
other place, where container stuffing is to be carried out, to the jurisdictional customs officer.
2. The exporter should be registered under GST and should be filing GST-1 and GSTR-2. Where exporter is not a
GST registrant, he shall bring the export goods to a Container Freight Station/Inland Container Depot for stuffing
and sealing of container. However, in certain situations, an exporter may follow the self-sealing procedure even if
he is not required to be registered under GST Laws. Such an exception is available to the Status Holders
recognized by DGFT under a valid status holder certificate issued in this regard.
3. Any exporter desirous of availing this procedure shall inform the jurisdictional Custom Officer of the rank of
Superintendent or Appraiser of Customs, at least 15 days before the first planned movement of a consignment
from his/her factory/ premises, about the intention to follow self- sealing procedure to export goods from the
factory premises or warehouse. The jurisdictional Superintendent or an Appraiser or an Inspector of Customs
shall visit the premises from where the export goods will be stuffed & sealed for export.
4. The exporter is required to intimate jurisdictional superintendent of customs each time when self-sealing is
carried out at approved premise. Self-Sealing permission once given by a Principal Commissioner/Commissioner
of Customs shall be valid for export at all the customs stations.
5. Transport document for movement of self-sealed container by an exporter from factory or warehouse shall be
same as the transport document prescribed under the GST Laws. In the case of an exporter who is not a GST
registrant, way bill or transport challan or lorry receipt shall be the transport document.
6. The exporter would be required to seal the container with the tamper proof electronic-seal of standard
specification. The electronic seal should have a unique number which would be declared in the Shipping Bill.
7. The above new procedure for Self-sealing would come into effect from September1, 2017.Until then the existing
practice of sealing the container with bottle seal under Central excise provisions or otherwise would continue.