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

Kaveri Engineering Pvt Ltd issued an export invoice for goods on 10 January under an LUT, but the goods were not exported. The Commissioner has not allowed any extension. Under Rule 96A(1)(a), by when must it pay the tax with interest under section 50(1)?

The tax and interest must be paid within fifteen days after three months from the invoice date, unless the Commissioner allows more time. This is the Rule 96A(1)(a) deadline for goods that are not exported. The one-year timeline applies only to non-receipt of payment for services.

  1. AFifteen days after the expiry of three months from 10 JanuaryCorrect
  2. BFifteen days after the expiry of one year from 10 January
  3. CWithin thirty days from 10 January
  4. DFifteen days after the end of the financial year

Explanation

Rule 96A(1)(a) binds the person to pay within fifteen days after the expiry of three months from the invoice date, or such further period as the Commissioner allows, if goods are not exported. The one-year period in clause (b) applies to services where payment is not received, so it is the wrong distractor here.

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