Export Of Used Capital Goods

[Guest]

Dear All,

Greetings !!

We have imported some machinery in Oct 2019 UK & credit taken on based on the bill of Entry filed in same month GSTR-3B. Now due to some issues we are sending back machinery to UK Korea.

Now we want to understand whether 18(6) of CGST Act & 40 (2)CGST Rules will be applicable or Not ??? or With the LUT we can export the machinery without payment of GST ???

Please clarify me which one is correct.

AI Summary

Clarification on GST for Exporting Used Machinery: Section 18(6) and Rule 40(2) Require Tax on Depreciated Value A discussion on a forum addresses the export of used machinery initially imported from the UK, with GST credit claimed. The querist seeks clarification on whether Section 18(6) of the CGST Act and Rule 40(2) of the CGST Rules apply to their situation or if they can export under a Letter of Undertaking (LUT) without GST payment. A respondent clarifies that Section 18(6) and Rule 40(2) are applicable, indicating that tax must be paid on the depreciated value of the machinery, as it has been used for about five months, even if exporting under LUT.