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

Sundaram Textiles Ltd, Tirupur, supplies goods to a buyer in Dubai under a Letter of Undertaking without payment of integrated tax. The export invoice is dated 1 March. The goods are not exported, and no extension is allowed by the Commissioner. Within what period must the exporter pay the tax with interest under section 50(1), as per Rule 96A?

The exporter must pay the tax with interest within fifteen days after three months from the invoice date if the goods are not exported, unless the Commissioner allows more time. The one-year period relates to services where payment is not received, so it does not apply here.

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

Explanation

Rule 96A(1)(a) binds the exporter to pay the tax and interest within fifteen days after three months from the invoice date if the goods are not exported, unless the Commissioner allows more time. For an invoice dated 1 March, three months end on 1 June, so payment is due by 16 June. The one-year period applies only to non-receipt of payment for services, so that option is wrong.

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