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

Kaveri Software Services Ltd exports IT services under an LUT without payment of integrated tax. The invoice is dated 1 April 2025. The payment is not received in convertible foreign exchange. The FEMA period is one year and the RBI has not granted any extension. Under Rule 96A(1)(b), the tax with interest becomes payable within:

For services where payment is not received in convertible foreign exchange, tax with interest is payable within fifteen days after one year (or the later FEMA period including RBI extension) from the invoice date, or any further period the Commissioner allows.

  1. AFifteen days after the expiry of one year from the invoice date (or later FEMA period incl. RBI extension), or such further period as the Commissioner allowsCorrect
  2. BFifteen days after the expiry of three months from the invoice date
  3. CThirty days after the expiry of one year from the invoice date
  4. DImmediately on the expiry of one year from the invoice date, with no additional days

Explanation

Rule 96A(1)(b) gives fifteen days after one year, or the FEMA period including RBI extension, whichever is later, from the invoice date, or such further period as the Commissioner allows. Option B is the goods-not-exported period, so it does not apply to unrealised service payments.

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