EXPORT WITH PAYMENT OF IGST- REJECTED

[SUDHIRKUMAR SHAH]

Goods Exported with Payment of IGST. However Goods rejected by foreign buyer after reaching at his place as not as per the specifications given. IGST paid on Export received as refund. Export proceeds will not realise and goods will not be re-imported.

Now

1. What will be impact on client, under GST act, FEMA Act, Customs Act an treatment in books as well as GST returns.

[KASTURI SETHI]

NAZNEEN Versus DIRECTOR OF ENFORCEMENT, NEW DELHI = 2008 (9) TMI 216 - RAJASTHAN HIGH COURT

 

[YAGAY andSUN]

In our you have to reverse all export incentives i.e. refund of IGST, AIR Duty drawback. Further, you can also check the following para of the RBI Master Direction as amended in 2021.

21C.23 “Write-off” of unrealized export bills

C.24 Write off in cases of payment of claims by ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA)

C.25 Write-off – relaxation

AI Summary

IGST refund reversal required when exported goods are rejected and export proceeds remain unrealized; also reverse other export incentives Goods exported with IGST paid were rejected abroad, resulting in recovery of the IGST refund and non realisation of export proceeds; this necessitates reversal of export incentives (IGST refund, duty drawback), adjustment in GST returns and accounting, and invocation of RBI Master Directions on write off of unrealized export bills and related FEMA reporting where applicable.