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

Sundaram Textiles Pvt Ltd, a registered person, exports readymade garments under a Letter of Undertaking without payment of integrated tax. The export invoice is dated 10 June, but the goods are not exported. No extension is granted by the Commissioner. Under Rule 96A of the CGST Rules, 2017, within what period must the tax with interest under section 50(1) be paid to honour the bond/LUT?

For goods not exported, the exporter under bond or LUT must pay the tax with interest within fifteen days after three months from the export invoice date, unless the Commissioner allows more time. The one-year period relates to non-receipt of payment for services.

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

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 (or a longer period allowed by the Commissioner) if goods are not exported. The one-year period applies only to services where payment is not received in convertible foreign exchange, so that option is wrong for goods.

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