Track actual export against the invoice clock
For a registered person exporting goods without payment of integrated tax under a bond or LUT in FORM GST RFD-11, the ordinary Rule 96A(1)(a) window is three months from issue of the export invoice. If the goods have not been exported out of India by then, or by a further period allowed by the Commissioner, the undertaking requires payment of tax due and section 50(1) interest within the following 15 days. Track the export deadline separately from the payment deadline. This article concerns goods taken out of India and does not apply the service realisation clock.
Read the applicable text: ICAI CGST bare law: Rule 96A and Rule 96B CBIC Circular 125/44/2019-GST: paragraphs 44–45.
Reconcile each invoice to the physical movement
Keep the tax invoice, goods description and quantity, shipping bill or bill of export and the Customs export confirmation together. A booking, factory dispatch or shipping bill alone may not establish actual export. Under Rule 96A(2), the details of export invoices in GSTR-1, including relevant GSTR-1A amendments, and the Customs confirmation travel between the systems. An unlinked invoice calls for evidence review: a data mismatch and a shipment that has not left India are different problems. For split shipments, reconcile the exported quantity and the remaining exposure before deciding the treatment of the outstanding portion.
Document the extension decision
Submit a supported request when a shipment is likely to exceed the ordinary window. Keep delay evidence and the decision on file; an application is not permission. CBIC Circular 125/44/2019-GST, paragraph 45, addresses goods actually exported after the ordinary period: it says payment followed by refund should not be insisted upon in such cases and explains that the jurisdictional Commissioner may consider a post-facto extension on the facts. Distinguish that guidance from a standing extension or an assurance that a request will be granted. Paragraph 44 separately addresses late furnishing of the LUT.
Close payment and restoration separately
Where the goods are not exported within the applicable period and the amount due is not paid, Rule 96A(3) provides for withdrawal of the facility and recovery under section 79. Rule 96A(4) provides restoration on payment of the amount due. Keep evidence of tax, interest, payment allocation and subsequent status. If tax and interest were already paid under Rule 96A and the goods later leave India, paragraph 4 of CBIC Circular 197/09/2023-GST addresses refund of the IGST and otherwise admissible unutilised input tax credit. It does not allow a refund of the interest paid under Rule 96A(1). Check the applicable statutory refund restrictions separately. If an export refund was paid and the sale proceeds are not fully realised within the applicable FEMA period, including any extension, Rule 96B generally requires proportionate repayment with interest within 30 days of expiry. Check its RBI write-off exception and the separate conditions for refunding a recovery following later realisation. A shipping deadline, a recovery for unpaid proceeds and a refund claim have different triggers.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Invoice versus dispatch date
An export invoice is issued on 10 June 2026 and the goods reach the port on 20 June. The ordinary three-month export date is 10 September, and the following 15-day payment date is 25 September if the condition is unmet. Neither is measured from 20 June.
Illustrative example 2: Customs confirmation supports timely export
A 5 July invoice is linked to actual export on 29 September. The ordinary export date is 5 October and actual export is six days earlier. A later system match does not by itself change the underlying movement date.
Illustrative example 3: Extension changes both clocks
A 12 June invoice normally reaches three months on 12 September 2026. The Commissioner permits export through 30 September. If the goods still do not leave by then, the following 15-day payment date is 15 October on the stated facts.
Illustrative example 4: Split shipment evidence
One invoice lists 500 units of equal value. Export evidence covers 380 before the deadline. The open quantity is 120, or 24%; at ₹800 per unit it represents ₹96,000 of invoice value for review. This is an exposure register, not a determination of the tax base or liability.
Illustrative example 5: Late actual export
A 6 June 2026 invoice reaches three months on 6 September. Goods are actually exported on 15 September, nine days later. The team documents the nine-day delay and requests consideration under paragraph 45; it does not mark the file as timely on the unextended dates.
Illustrative example 6: Payment ledger tie-out
A company establishes ₹72,000 tax and ₹1,800 section 50(1) interest on its verified facts. The combined amount to match to evidence is ₹73,800; a payment record of ₹72,000 alone leaves a ₹1,800 difference. The example assumes the interest has been independently determined.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Identify the export route | GSTIN, bond or LUT and RFD-11 acknowledgement. |
| 2 | Record invoice issue date | Issued tax invoice and dated invoice register. |
| 3 | Compute the shipment deadline | Three calendar months or operative written extension. |
| 4 | Link the shipping record | Shipping bill or bill of export and invoice details. |
| 5 | Confirm actual export | Customs confirmation and movement evidence. |
| 6 | Reconcile split quantities | Invoice units, exported units and open balance. |
| 7 | Investigate system discrepancies | Return disclosures and corresponding Customs records. |
| 8 | Obtain a decision on delay | Extension request, reasons, evidence and authority response. |
| 9 | Check payment and interest where due | Working, statutory basis and proof of payment. |
| 10 | Track closure and subsequent risks | Facility status and separate refund realisation review. |
Sixteen practitioner FAQs
1. Does the export invoice or shipping bill start the three months?
Rule 96A(1)(a) uses the export invoice issue date.
2. Are three months always ninety days?
No. Use calendar months and verify the actual expiry date.
3. Does an LUT waive the need for actual export?
No. The bond or LUT undertakes the stated payment obligations if the conditions are unmet.
4. Is a factory dispatch sufficient?
No. Establish that the goods were taken out of India.
5. Does the 15-day period extend the ordinary shipment window?
It is a payment interval under the rule. Review separately any extension or post-facto treatment.
6. Who can allow a further period?
The Commissioner under Rule 96A(1)(a); retain the decision.
7. Can I treat a pending application as allowed?
No. Keep the application and any grant of extension separate.
8. What if export happened after three months?
Present actual export evidence and consider paragraph 45 and the extension decision.
9. Does paragraph 44 handle late physical export?
It addresses late LUT furnishing. Paragraph 45 addresses late actual export.
10. Does a portal mismatch prove export did not occur?
No. Resolve the mismatch using invoice and Customs evidence.
11. What should I do with a partially exported invoice?
Reconcile the quantities and review the supported treatment of the remaining goods.
12. Is an advance from the customer proof of export?
No. It does not prove movement of the goods out of India.
13. What if goods are never exported and payment is missed?
Check the withdrawal and recovery consequences under Rule 96A(3).
14. How is the withdrawn facility restored?
Rule 96A(4) provides restoration when the amount due is paid.
15. Do I use the same deadline for export services?
No. Services have a separate payment-realisation test under Rule 96A(1)(b), as amended. Determine the later of the one-year and applicable FEMA periods and check for any further period the Commissioner allows.
16. Does Rule 96A(1)(a) decide refund recovery for non-realisation of goods proceeds?
No. Review the separate Rule 96B conditions where a goods-export refund was paid.
Official sources
ICAI CGST bare law: Rule 96A and Rule 96B CBIC Circular 125/44/2019-GST: paragraphs 44–45; CBIC Circular 197/09/2023-GST, paragraph 4: refunds after Rule 96A payment