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

Sundaram Textiles Ltd, Tiruppur, supplies garments to a buyer in Dubai under a Letter of Undertaking without payment of integrated tax. The export invoice is dated 10 January. The goods are not exported out of India. As per Rule 96A of the CGST Rules, 2017, by when must the exporter pay the tax due along with interest under section 50(1), assuming the Commissioner allows no further period?

The exporter must pay the tax with interest within fifteen days after three months from the date of the export invoice, because the goods were not exported. The one-year period applies only to services where payment is not received in convertible foreign exchange or permitted rupees.

  1. AWithin fifteen days after the expiry of three months from the date of the export invoiceCorrect
  2. BWithin fifteen days after the expiry of one year from the date of the export invoice
  3. CWithin thirty days from the date of the export invoice
  4. DWithin thirty days after the expiry of the period allowed under FEMA

Explanation

Rule 96A(1)(a) requires payment within fifteen days after the expiry of three months from the date of issue of the export invoice if goods are not exported. The one-year period in option B applies to export of services where payment is not received in convertible foreign exchange, so it is wrong here.

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