waiver of delay in export of goods beyond 90 days under GST

[MALAYANUR PADMANABHARAO]

We are merchant exporter of goods and undertake exports under LUT availing concessional rate of GST (0.1%). We procured goods from vendors in India but could not export goods within 90 days from the date of supply of goods to us. Wish to know the procedure / extant provisions on the jurisdiction of the Principal Commissioner authorised to condone the delay.

[Shilpi Jain]

Not exporting within 90 days at the most can be regarded as a procedural lapse.

However, litigation is possible due to this.

Though any demand will be on the supplier who had charged 0.1% 

[KASTURI SETHI]

As per Notification No. 40/17-CT(Rate) dated 23.10.17, if the goods are not exported within 90 days from the date of  issue of tax invoice, the exemption is not available. 

 Relevant extract of Notification No/40/17-CT(Rate) dated 23.10.17

"2. The registered supplier shall not be eligible for the above mentioned exemption if the registered recipient fails to export the said goods within a period of ninety days from the date of issue of tax invoice."

[Shilpi Jain]

There is a circular in the context of refund where it has been clarified that not exporting good within three months(as required for one of the provisions under gst) should not be enforced too strictly if the export had actually happened.

You can take shelter of this to defend the case

However to be on the safer side supplier should consider paying entire 18% and allow the recipient to take credit

[KASTURI SETHI]

I think that there is no escape route except channels of High Court and Supreme Court (Article 226 of the Constitution, if the Court finds a fit case). A circular cannot override a  Notification.

[Ganeshan Kalyani]

The Notification cited by Sri Kasturi Sir is clear and solve the doubt.

[Padmanathan KV]

It is a settled proposition that notifications giving concessions/ benefits have to be read strictly and if the conditions therein are not complied, the benefit may not be available.

[Apurva Kalantri]

@shilpijain Mam, can you share the circular details ?

AI Summary

Delay in export under GST nullifies concessional treatment unless narrow circular-based leniency or judicial relief is available.
Concessional GST under LUT is lost if goods are not exported within ninety days of supply per Notification No. 40/17-CT(Rate); a refund circular suggests limited leniency where exports occurred, but notifications govern entitlement, suppliers may pay full tax and allow recipient credit, and judicial remedies remain a possible avenue.