Skip to content

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

Zenith Engineering Ltd supplied goods to an SEZ unit without payment of integrated tax and furnished a bond. Which statement is correct under Rule 96A?

Rule 96A(1) applies mutatis mutandis to zero-rated supplies to an SEZ developer or SEZ unit made without payment of integrated tax. So the supplier must furnish a bond or Letter of Undertaking before the supply, just as for exports.

  1. ARule 96A(1) applies mutatis mutandis to zero-rated supplies to an SEZ developer or SEZ unit without payment of integrated taxCorrect
  2. BBond is not required for supplies to an SEZ unit
  3. CWhere the registered person fails to pay the amount due, the export allowed under bond is withdrawn only after a court order
  4. DThe bond must be furnished to the jurisdictional Commissioner after the supply is made

Explanation

Rule 96A(6) applies sub-rule (1) mutatis mutandis to zero-rated supplies to an SEZ developer or unit without payment of integrated tax. Bond is furnished prior to export, and under sub-rule (3) withdrawal occurs forthwith on failure to pay, with recovery under section 79.

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