Paying excess IGST

[Rajesh Kumar]

Sir , please inform what will be consequences when an exporter paying IGST on his goods on export @12% instead of 5% and taking IGST refund from Customs. Actually he is paying excess duty than applicable on the rate and taking IGST refund.

AI Summary

Exporter Warned Against Overpaying IGST at 12% on Exports; Potential Legal Consequences for Misusing ITC Highlighted An exporter inquired about the consequences of paying excess Integrated Goods and Services Tax (IGST) at 12% instead of the applicable 5% on exported goods and receiving refunds from Customs. One respondent indicated that Customs would refund any IGST paid, regardless of the amount. However, other participants warned that this practice is legally incorrect and could be seen as an attempt to misuse accumulated Input Tax Credit (ITC), potentially leading to interest, penalties, and litigation. They advised the exporter to cease this practice immediately to avoid legal repercussions.