Skip to content

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

Under Rule 96B, Ganga Exports Ltd received a refund of integrated tax paid on export of goods. The export proceeds were not realised in India within the FEMA period, including extension, which ended on 31 March. Which statement is correct?

Ganga must deposit the refund, only to the extent proceeds were not realised, with interest, within thirty days of the FEMA period ending. Otherwise the amount is recovered as an erroneous refund with section 50 interest. Rule 96B covers both unutilised ITC refunds and integrated tax refunds on goods exports.

  1. AGanga must deposit the refund, to the extent of non-realisation, with applicable interest within thirty days of 31 March, failing which it is recovered as an erroneous refundCorrect
  2. BGanga must deposit the full refund within fifteen days of 31 March, regardless of the extent of non-realisation
  3. CGanga need not deposit anything, as recovery applies only to refund of unutilised input tax credit
  4. DGanga must deposit the refund within three months of 31 March, failing which the export is withdrawn under Rule 96A(3)

Explanation

Rule 96B(1) covers refund of unutilised ITC or of integrated tax paid on export of goods. The deposit is limited to the extent of non-realisation, with interest, within thirty days of the expiry of the period. Failing that, recovery follows the erroneous refund provisions with section 50 interest. Option C is wrong because integrated tax refunds are expressly covered.

Did you get it right without looking?

One question tells you little. A timed set on Import and Export Under GST shows your real accuracy, how long you take and where you lose marks.

Practise Import and Export Under GSTFree diagnostic mock

More Import and Export Under GST questions