Skip to content

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

Mahalaxmi Textiles Ltd, a registered person, exports garments from Surat under a Letter of Undertaking without payment of integrated tax. The export invoice is dated 1 June. The goods are not exported out of India, and the Commissioner has allowed no extension. Under Rule 96A, by when must the tax and interest under section 50(1) be paid to avoid withdrawal of the export facility?

The tax with interest is payable within fifteen days after three months from the invoice date. Rule 96A(1)(a) fixes this period for goods not exported, unless the Commissioner allows more time. The one-year period relates to non-receipt of payment for export of services, not to unexported goods.

  1. AWithin 15 days after the expiry of three months from 1 JuneCorrect
  2. BWithin 15 days after the expiry of one year from 1 June
  3. CWithin 30 days after the expiry of three months from 1 June
  4. DWithin 15 days from 1 June

Explanation

Rule 96A(1)(a) binds the exporter to pay within fifteen days after the expiry of three months from the invoice date if the goods are not exported. The invoice is dated 1 June and there is no extension, so the three months end on 1 September and payment is due 15 days later. The one-year period applies only to services where payment is not received, so option B is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Import and Export Under GST shows your real accuracy, how long you take and where you lose marks.

Practise Import and Export Under GSTFree diagnostic mock

More Import and Export Under GST questions