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

Sunrise Textiles Ltd, Surat, a registered person, wants to export garments without paying integrated tax. Under Rule 96A of the CGST Rules, 2017, what must it do before the export?

Before exporting without paying integrated tax, the registered person must furnish a bond or Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner. It undertakes to pay the tax with interest if the export conditions are not met, as Rule 96A(1) requires.

  1. AFurnish a bond or Letter of Undertaking in FORM GST RFD-11 to the jurisdictional CommissionerCorrect
  2. BPay IGST and claim a refund after the shipping bill is filed
  3. CObtain an advance ruling on the export
  4. DFile FORM GSTR-9 for the previous year

Explanation

Rule 96A(1) requires a registered person who opts to export without payment of integrated tax to furnish, prior to export, a bond or LUT in FORM GST RFD-11 to the jurisdictional Commissioner. The option of paying IGST and claiming a refund is a separate route and is not what the question asks. An advance ruling and an annual return are not conditions for this option.

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