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

Sunrise Textiles Pvt Ltd, a registered person in Surat, exports garments under a Letter of Undertaking without paying integrated tax. The export invoice is dated 10 January. The goods are not exported at all. As per Rule 96A of the CGST Rules, 2017, by when must it pay the tax along with interest under section 50(1)?

Where goods are not exported, the bond or LUT holder must pay the tax with interest within fifteen days after three months from the invoice date, or any further period the Commissioner allows. The one-year period is for non-realisation of payment for services.

  1. AWithin fifteen days after the expiry of three months from the invoice date, or such further period as the Commissioner allowsCorrect
  2. BWithin fifteen days after the expiry of one year from the invoice date
  3. CWithin thirty days of the invoice date
  4. DWithin fifteen days after the expiry of six months from the invoice date

Explanation

Rule 96A(1)(a) covers goods not exported: tax with interest is due within fifteen days after three months from the invoice date, or any further period the Commissioner allows. The one-year period in option B applies to services where payment is not received in convertible foreign exchange, so it is wrong here.

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