The central board of indirect taxes and customs in its circular dated 13th September 2019, has revised certain norms for execution of Bank Guarantee under Advance Authorisation (AA), Duty Free Import Authorisation(s) (DFIA) and Export Promotion Capital Goods (EPCG) schemes and has also made clarification as to what should be the basis for waiver of Bank Guarantee to be executed with Customs in the Goods and Services Tax (GST) regime under schemes in respect of manufacturer exporters/service providers.
Highlights of the circular:
- Every Manufacturer exporters/Service Providers registered with the GST authorities (Centre/State/Union Territory) shall be eligible to claim exemption from furnish bank guarantee, who have been exporting during the previous two financial years and have minimum export of Rs. 1 crore or more during the preceding financial year and Who have paid GST of Rs.1 crore or more during the preceding financial year.
- CBIC has removed the requirement of certification by the jurisdictional Superintendent of Central Excise regarding furnishing of proof of export performance or payment of duty. Under GST regime, it has been decided to discontinue the requirement for procurement of such certificate from Central Excise authorities.
- However in case where AA/DFIA/EPCG authorisation holder is a registered member of an Export Promotion Council, he shall produce a certificate of export performance or payment of duty/GST for the purpose of availing Bank Guarantee exemption from the concerned Export Promotion Council
- In cases where the AA/DFIA/EPCG authorisation holder is not a registered member of an Export Promotion Council, he may produce such certificate duly authenticated by a practicing Chartered Accountant who is registered with the GST Department for payment of GST.
Click here to read the circular
