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

AI Summary

Indian Company Faces ITC Refund Hurdle Due to Missing Export Documents; Section 54(3)(i) May Offer Relief An Indian company manufactures goods for a UK-based e-commerce website, shipping directly to UK customers via courier services like UPS or FedEx. Despite receiving foreign currency for these exports, the Indian company lacks formal export documents such as the EGM copy, which complicates claiming Input Tax Credit (ITC) refunds under GST. Respondents suggest investigating how the company addresses EDPMS issues without proper documentation and recommend tracking EGM details through the ICES portal. They emphasize that if the goods are genuinely exported, the company is entitled to an ITC refund under Section 54(3)(i) of the GST Act.