TaxTMI 
TaxTMI 
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.
Paying excess IGST
08 Dec 2019 
5 Replies 
1764 Views Asked by
Payment of excess IGST may prompt recovery and penalties despite refunds being processed by customs.
An exporter who remits IGST at a higher rate may obtain an online refund of the IGST actually paid, since Customs processes refunds for IGST remitted. However, voluntary overpayment is legally improper; authorities may treat excess payment as an attempt to encash input tax credit and pursue recovery with interest and penalty, exposing the exporter to assessment and litigation. (AI Summary)
An exporter who remits IGST at a higher rate may obtain an online refund of the IGST actually paid, since Customs processes refunds for IGST remitted. However, voluntary overpayment is legally improper; authorities may treat excess payment as an attempt to encash input tax credit and pursue recovery with interest and penalty, exposing the exporter to assessment and litigation. (AI Summary)