Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No 31/2019 -Customs in order to review the norms for execution of Bank Guarantee under Advance Authorisation (AA), Duty Free Import Authorisation(s) (DFIA) and Export Promotion Capital Goods (EPCG) schemes and have also made clarifications regarding the basis for waiver of Bank Guarantee to be executed with Customs in the Goods and Services Tax (GST) regime under such schemes in respect of manufacturers exporters/service providers.
Key Points of the Circular are:
- CBIC has clarified that the following categories of manufacturer exporters/Service Providers registered with the GST authorities (Centre/State/Union Territory) shall be eligible to claim exemption from furnishing Bank Guarantee –
a. 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.
b. Who have paid GST of Rs.1 crore or more during the preceding financial year.
2. 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. Therefore, in case where –
a. AA/DFIA/EPCG authorisation holder is a registered member of an Export Promotion Council, he shall be required to 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.
b. AA/DFIA/EPCG authorisation holder is not a registered member of an Export Promotion Council, he may produce such certificate of export performance or payment of duty/GST for the purpose of availing Bank Guarantee exemption duly authenticated by a practicing Chartered Accountant who is registered with the GST Department (Centre/State/Union Territory) for payment of GST. Chartered Accountant will be required to mention his GSTIN and other registration details in the certificate.
For further details please refer the attached document.
Source: Central Board of Indirect Taxes & Customs
