REIMPORT OF MATERIAL

[POLYPLEX CORPORATIONLTD]

Dear Sir

We had exported our goods on 'LUT' to customer outside India. Goods reached at Customer port and rejected by him due to Quality issue.

Now We are reimporting that material under Custom Notification No. - 45/2017. We had reversed the drawback benefit.

Superintendent is asking to pay 'IGST' also as per Notification 45/2017.

But we sold this material on 'LUT', Whether we have to 'IGST' ?

[YAGAY andSUN]

You can pay IGST and avail ITC.

[Raja Palaniappan]

Dear Sirs

We have similar issue and consignee is ok to pay IGST. But customs imposing interest on IGST ?

Was there any interest levied on IGST and if so was it mandatory and any criteria of period during import. Export done by 2019 aug not beyond 24 months import now jul 2021 . Delay in reimporting process due to covid. Pls confirm whether intrest applicable for IGST from the period of export to import.

AI Summary

Company Faces IGST Demand on Reimported Goods Under Custom Notification No. 45/2017; Interest Applicability Questioned Due to COVID-19 Delay A company exported goods under a Letter of Undertaking (LUT), which were rejected by the customer due to quality issues and are now being reimported under Custom Notification No. 45/2017. The company reversed the drawback benefit but faces a demand from customs to pay Integrated Goods and Services Tax (IGST). One response suggests paying IGST and claiming Input Tax Credit (ITC). Another contributor mentions a similar situation where the consignee agreed to pay IGST, but customs imposed interest on it, questioning whether interest applies from the export to import period, considering a delay due to COVID-19.