IGST Credit availability in case of goods are exported.

[JIGAR SHAH]

Case:

Assessee Mr.A imported goods after paying import duty. Such imported Goods are exported by Assessee Mr. A to UAE under Zero Rated Supply.

Assessee Mr. A has paid Freight/courier service charges to export such goods and he want to avail input credit of IGST paid on Freight/courier service charges incurred on export of goods that were earlier imported.

Conclusion:

Can Assessee avail input credit of IGST paid on Freight/courier service charges paid on Export?

[Rajagopalan Ranganathan]

Sir,

IGST paid on freight services for exporting goods to a country outside India can be claimed as refund.

AI Summary

IGST input tax on export freight eligible for refund when services relate to zero-rated exports.
IGST paid on freight/courier services used to export goods to a destination outside India is recoverable by the taxpayer through the statutory mechanism applicable to exports; in this factual scenario the IGST on such freight services can be claimed back by the exporter as a refund, reflecting its connection to the zero-rated export transaction rather than domestic consumption.