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

IGST liability on reimportation: IGST payable on returned exports, with ITC available; interest applicability disputed. Reimportation under Notification 45/2017 of goods originally exported on LUT and returned after rejection attracts IGST on import; IGST may be paid and corresponding input tax credit availed. Drawback benefits were reversed prior to reimport. A distinct unresolved query concerns whether interest on IGST is levied for the period between export and delayed reimport and what criteria govern any such interest liability.