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CA Final · Indirect Tax Laws · Import and Export Under GST

Digital Minds LLP, Pune, exported software services under LUT on 1 April 2025. Payment has not been received in convertible foreign exchange. FEMA allows 9 months and the RBI has not extended it. No Commissioner extension exists. Under Rule 96A(1)(b), the tax and interest are payable within:

The payment is due fifteen days after one year from the invoice date. Rule 96A(1)(b) takes the later of one year or the FEMA period including RBI extensions. Since the FEMA period of nine months is shorter than one year, one year governs.

  1. AFifteen days after the expiry of one year from the invoice dateCorrect
  2. BFifteen days after the expiry of nine months from the invoice date
  3. CFifteen days after the expiry of three months from the invoice date
  4. DThirty days after the expiry of the FEMA period

Explanation

Rule 96A(1)(b) uses fifteen days after one year or the FEMA period including RBI extensions, whichever is later. One year exceeds the 9 months allowed, so one year applies. Choosing nine months ignores the 'whichever is later' wording.

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