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.
Exporter Faces IGST Refund Reversal Due to Rejected Goods; Guidance Sought on GST, FEMA, and Customs Implications Goods exported with payment of IGST were rejected by the foreign buyer due to non-compliance with specifications. The exporter received a refund for the IGST paid, but the export proceeds will not be realized, and the goods will not be re-imported. The query seeks guidance on the implications under the GST Act, FEMA Act, and Customs Act, as well as accounting treatment and GST returns. One response suggests reversing all export incentives, including the IGST refund and duty drawback, and refers to RBI Master Direction provisions regarding the write-off of unrealized export bills and related relaxations. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
