IGST REFUND ON FREE CHARGE EXPORT SHIPMENT

[pritesh shah]

Dear sir,

We have exported material on payment of IGST against free of charge sample shipment.

We have mentioned IGST paid amoun in our export shippingbill.

My query is that whether we can get IGST refund in said shipment as foreign exchange is not realisd.

Thanks in advance for your kind advise.

[KASTURI SETHI]

Realisation of foreign exchange is one of the conditions for sanction of rebate of IGST paid. However, there are exceptions i.e.Nepal, Bhutan etc. for which realization of Indian currency is accepted by the department.

[pritesh shah]

Dear Sir,

Thank you for your kind advise.

[Nash Industries I Pvt Ltd]

Agree with Mr Sethi.

Regards

S.Ramaswamy

[pritesh shah]

Dear Sir's,

With reference to my query , please be inform you that today in our bank account IGST refund credited.

Can you please confirm that can government demand said amount to be returned back with interest?

We have supplied material free of charge on payment of IGST.

Look forward to your valuable feedback.

Thanks in advance

[KASTURI SETHI]

Not at all.

[pritesh shah]

Dear Sir,

Thank you for your reply.

AI Summary

IGST refund conditions: foreign exchange realisation is required for rebate, with limited currency exceptions; refund credited despite non realisation.
Realisation of foreign exchange is ordinarily a condition for sanction of IGST rebate; exceptions exist for certain territories where Indian currency realisation is accepted. The exporter paid IGST on free samples, reported it in the shipping bill, received an IGST refund credit despite non realisation of foreign exchange, and sought to know whether the government could later demand repayment with interest; the forum advisory replied that recovery with interest would not be required.