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" ?

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.