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

Meridian Engineering Ltd exported goods and received a refund of Rs 12,00,000 of integrated tax paid on the export. Sale proceeds of Rs 40,00,000 were due, of which Rs 30,00,000 were realised within the FEMA period and Rs 10,00,000 were not, with no extension. The refund is proportionate to the unrealised proceeds and RBI has not written off the requirement. What amount must be deposited with interest under Rule 96B(1), and by when?

Rule 96B requires deposit of the refund only to the extent proceeds are unrealised: 12,00,000 x 10/40 = Rs 3,00,000, with applicable interest, within thirty days of the expiry of the FEMA period or extended period.

  1. ARs 3,00,000 within thirty days of the expiry of the FEMA periodCorrect
  2. BRs 12,00,000 within thirty days of the expiry of the FEMA period
  3. CRs 3,00,000 within fifteen days of the expiry of the FEMA period
  4. DRs 9,00,000 within thirty days of the expiry of the FEMA period

Explanation

Deposit is to the extent of non-realisation: 12,00,000 x 10/40 = Rs 3,00,000, with interest, within thirty days of the expiry of the period. Rs 12,00,000 ignores the partial realisation. Rs 9,00,000 is the refund relating to the realised proceeds.

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