What is bond amount under GST – How to calculate the bond amount & bank guarantee for filing under GST for export with example

What is bond amount under GST – How to calculate the bond amount & bank guarantee for filing under GST for export with example

Presentation 

On the off chance that you need to send out the products or administrations under GST without charging the IGST on the same, at that point you have to present the bond or letter of undertaking that every one of the prerequisites in regards to trades under GST should be followed. 

As stated, there are conditions which choose whether bond is recorded or the letter of undertaking. According to notice, if the aggregate remote receipts are under Rs.1 crore then you are required to document the bond. 

What is the bond sum? Also, how to compute the same? 

According to the roundabout by the legislature, the bond sum might be equivalent to the duty obligation on the earlier year turnover or the normal turnover in this year. Further, a bank ensure is likewise required to be documented alongside the bond which should not be under 15% of the bond sum. 

Give us a chance to comprehend the same by method for instance: 

Illustration: Mr. A had an earlier year turnover of Rs.1 crore and he likewise anticipate that the turnover will be around Rs.1 crore in the current monetary year. Mr. A will be an exporter and henceforth, he need to send out without paying assessment. Please guidance? Expect impose rate @ 18%. 

Reply: according to control 96A and the notice issued by the legislature of India, if the aggregate remote internal receipts are under Rs.1 crore than bond is required to be documented. 

The bond sum ought to be equivalent to the aggregate duty risk on the fare. For our situation, Mr. An anticipates that the turnover will be around Rs.1 crore and subsequently we can take Rs.1 crore as the base turnover. In this way the bond sum is to be figured as under: 

Bond sum = Rs.18 lakh (18% of Rs.1 crore) 

Bank Guarantee = Rs.2,70,000 (15% of Rs.18 lakh) 

What if Mr. A crosses the turnover of Rs.2 crore in the mid year? 

All things considered, Mr. A needs to reexamine the bond sum and present a crisp bond with extra bank certification to the office. Further, Mr. A needs to document the new bank ensure when turnover crosses the construct sum with respect to which the past bank assurance or bond was recorded. 

Additionally, since the turnover has crosses the earlier year point. All things considered, we have to take an adhoc higher sum as a base. So we take a higher measure of Rs.5 crore as the normal turnover. Presently the new bond sum should be figured as under: 

Bond sum = Rs.90 lakh (18% of Rs.5 crore) 

Bank ensure = Rs.13.50 lakh (15% of Rs.90 lakh) 

What is the citizen does not have any turnover in the past money related year? 

On the off chance that there is no turnover in the past money related year at that point security sum ought to be ascertained in view of the normal turnover. 

In whose name the bank assurance ought to be petitioned for trades? 

The bank assurance ought to be documented for the sake of President of India (hereinafter called " The Government") acting through the Assist. Comm./Dy. Official of Central Tax, Commissionerate with full ward.


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