Export Of Used Capital Goods

[Asked by 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

Export of Used Capital Goods: proportionate GST payable despite LUT when input tax credit was availed.
Export of used capital goods imported with input tax credit triggers the limitation and adjustment rules for capital goods: export under a Letter of Undertaking does not eliminate the obligation to reverse input tax credit or discharge tax on the depreciated value of goods used domestically prior to supply; the statutory adjustment provisions therefore apply.