TAX IMPLICTIONS ON RE-IMPORT

[RAMESH M]

We exported our automobile material with payment of IGST, Due to some techinical issue the exported materials were rejected. we have to RE-IMPORT the above material. If there is any tax implication while RE-IMPORT the same.

We also availed the all export benefits like DBK / MEIS / IGST refund for above export shipments

Shall we repay the availed above export benefits to GOVT ? or any other customs duty shall we pay additionally.

Any suggestions Please...

M.RAMESH

[KASTURI SETHI]

All export benefits have to be given back to Govt. and normal procedure for import has to be followed in re-import cases. Basic Customs duty and IGST will also be paid. See Section 20 of the Customs Act, 1962.

 

[Spudarjunan S]

Dear Sir,

In case of re-import of exported goods where DBK/IGST refund has been availed, only to the extent of DBK availed or IGST refund received you need to payback and all other been exempted from payment - Refer notification no. 45, 46,47/2017 -Cus(Tariff) dated 30.06.2017 based on your case.

For MEIS benefit, it will be provided on the least of realisation of export proceeds or value mentioned in Shipping Bill, So ideally there may not be rejection once the payment for the transaction been made.

[KASTURI SETHI]

I agree with Sh.Spudarjunan S.

AI Summary

Repayment of export benefits required on re-import; customs duties and IGST payable under import procedure.
Re-importation of exported goods requires repayment of export benefits to the extent availed and adherence to normal import procedures, including payment of Basic Customs Duty and IGST; specific incentive schemes may have distinct treatment, with repayment obligations limited to the quantum of drawback or IGST refund received and MEIS entitlement measured by realisation or declared export value.