Re-Import of Exported Goods in GST

[Praveen Nair]

Dear Experts,

The goods are exported by paying IGST and refund was claimed against exports.

Later the same material was rejected and then re-imported by paying IGST at the time of import, ITC credit has availed for the same.

Query:

a. Do we have to pay back IGST claimed as refund at the time of export? How to pay back?

b. If the IGST is paid back, how do we claim back the IGST if the same goods is re-exported?

Thank you

Pravin

[ANITA BHADRA]

Notification No. 45/2017 – Customs; dt 30th June, 2017 covers different scenarios under which exports are made and applicable Customs Duty Payable upon Re-import of such goods.

Goods exported under claim for refund of integrated tax paid on export goods

Custom duty payable on re import will be the amount of refund of integrated tax, availed at the time of export;

This concession / exemption (Notification number 158/95 dated 14.11.1995 ) allows to: goods manufactured in India such goods, exported and re-imported into India for repairs or for reconditioning subject to the condition, inter alia, that goods are re-imported within three years from the date of export that goods are re-exported within 6 months of re-import, etc.

[Yash Jain]

Sir,

Refer sec 34(1), and pass a credit note.

As the section informs that tax liability will be adjusted only by way of this mode in case of rejection, hence add your input account by amount of refund and pay the same. It's only reverse entry I.e entry made while availing refund from input.

2. In same manner, I.e either by paying igst by reversing input or claiming itc of unutilized credit.

**Please surrender drawback and other incentives.

Also check bank clearing the bills in edpms and idpms.

Rgds

AI Summary

Re import tax adjustment: restore IGST liability by credit note reversal when refunded exports are re imported, then pursue relief on re export. Where goods exported with an IGST refund are re imported after rejection, customs duty on re import is treated as equivalent to the IGST refunded; concessional re import for repair/reconditioning is available subject to time and re export conditions. The tax liability must be restored by issuing a credit note and reversing the input tax entries that enabled the original refund, or by paying IGST and utilising unutilised input tax credit. If the goods are re exported, relief may be sought again, but any drawback or incentives must be surrendered and banking/EDPMS/IDPMS formalities observed.