Re-credit of ITC due to repayment of refund amount

[Priyesh Mamnani]

In 2019 my client has made export (with payment of tax) and made the payment of tax by using ITC. He has availed the refund of GST ₹ 5 lakhs in cash. The amount of export has not been realised from customer so my client decided to repay the refund back to the GST Department. How can we claim the credit back

1. Can we reclaim the amount of ₹ 5 lakhs as an ITC in GSTR-3B? or

2. Can we ask the department to re-credit the amount in electronic credit ledger?

AI Summary

Client Seeks to Repay 2019 GST Refund and Reclaim Input Tax Credit; Clarification on IGST vs. ITC Needed A client exported goods in 2019 using Input Tax Credit (ITC) and received a GST refund of 5 lakhs. Due to non-realization of the export amount, the client intends to repay the refund and seeks to reclaim the ITC. Responses suggest the client can re-credit the amount in GSTR-3B or inform the GST officer after repayment. However, one respondent notes this is a refund of IGST, not ITC, and suggests following specific rules. The client acknowledges the situation and seeks to reclaim the credit to avoid ITC loss.