ITC REFUND ON EXPORT OF GOODS

[PRABHU RAMANATHAN]

Greetings,

An E-commerce website based in the UK sells the goods to the customer of the UK through online.This website will be visible only in the UK not in any other country. Whenever a person residing in the UK places an order on that website, it will automatically come to the Indian manufacturer who is residing in India. This Indian company will manufacture the goods and directly send the goods through UPS courier or Fedex courier to that customer door step itself instead of a third party website developers warehouse.

In turn, the courier company (i.e.UPS or Fedex couriers ) provides only the Courier Shipping Bill (CSB) to the Indian Company (i.e. Exporter)

Here the Indian company sells the goods to foreign company and sale proceeds are realized in foreign dollars but formal documents such as EGM copy, shipping bill, port code are not available in the name of Indian Company which would be normally available in the normal course of export from India. EGM copy in the name of Indian Company (i.e. Exporter) not available to claim the refund. The Indian company is doing this kind of export in huge volume per month and getting the proceeds in foreign currency.

In this case , how the Indian company would claim the refund of Input tax credit (ITC) of the inputs used for the export of goods in GST.

Kindly clarify this matter.

Thank you

[YAGAY andSUN]

Please confirm how the India supplier is closing the EDPMS related issues, if documents do not contain their name.

[ABHISHEK TRIPATHI]

Dear Prabhu Ji,

Did you try tracking EGM details via Tracking ICES (icegate.gov.in)?

One of my clients couldn’t find EGM details, so we tracked the same on the above link and filed the refund. That was normal shipping bill. Hope the same works for CSB.

Hope you have checked IEC Wise Summary Report. Not sure whether this will work or not.

See, if you have genuinely exported the goods then you should be getting refund u/s. 54(3)(i). That’s your substantive right. I am not sure how this procedural hurdle exists, if any.

AI Summary

ITC refund on exports requires documentary proof of export; trace shipping manifests and compile IEC and bank records to support the claim. Where an Indian manufacturer ships goods directly to foreign customers via international courier and receives only a Courier Shipping Bill and foreign remittance, absence of an EGM or shipping bill in the exporter's name can block filing for refund of Input Tax Credit. Practical steps include tracing EGM/shipping details through electronic tracking tools and reviewing IEC wise summary reports; if genuine exports with foreign exchange realisation are shown, the exporter has a substantive right to refund but must overcome documentary procedural hurdles by obtaining or tracing appropriate export documentation and compiling supporting records.