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

Kaveri Software Ltd exported IT services under LUT without payment of IGST. The invoice is dated 1 April 2025. Payment has not been received in convertible foreign exchange, and the FEMA period allowed (including RBI extensions) is the one year only; the Commissioner has granted no further period. Under Rule 96A(1)(b), by when must the tax with interest be paid?

Where payment for exported services is not received in convertible foreign exchange, tax with interest must be paid within fifteen days after one year (or the later FEMA or RBI-extended period) from the invoice date, unless the Commissioner allows a further period.

  1. AFifteen days after the expiry of three months from the invoice date
  2. BFifteen days after the expiry of one year from the invoice dateCorrect
  3. CThirty days after the expiry of one year from the invoice date
  4. DImmediately on the date of the invoice

Explanation

Rule 96A(1)(b) provides fifteen days after the expiry of one year, or the FEMA period including RBI extension, whichever is later, from the invoice date. Here one year ends 1 April 2026, so payment is due within fifteen days after it. The three-month limit applies to goods not exported.

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