Payment of IGST in Import of Goods

[Bhupesh Dand]

Sir,

We have paid IGST on import of goods from Malaysia, but due to quality issues we have rejected the material, is it possible for us to get refund of IGST paid on imports

Regards,

Bhupesh Dand

[Rajagopalan Ranganathan]

Sir,

It depends whether you re-export the rejected goods back to the foreign supplier. If you do so you can claim the refund of IGST paid at the time of import (including other duties paid on such import) by filing suitable Bill of Export etc.

[KASTURI SETHI]

Dear Querist,

You can claim drawback (of all duties paid) under Section 74 of the Customs Act, 1962 after re-exporting the said imported goods. You will have to first reverse ITC of IGST already taken and proof of reversal of duly certified by the jurisdictional GST Range Officer has to be attached with the drawback claim. You will get 98 % of duty paid at the time of importation of goods.

[KASTURI SETHI]

Also read Circular no.21/17- customs dated 30.6.17 in this context, especially, for IGST.

AI Summary

IGST recovery on re-export: re-export plus reversal of input tax credit enables refund or drawback under customs procedures. Recovery of import duties on rejected goods requires re-export and filing of export documentation to claim refund or drawback. For drawback claims, the importer must reverse any IGST input tax credit already availed and provide certification of that reversal by the jurisdictional GST range officer when submitting the drawback application under customs procedures.