Delay in recovery of Export Proceeds

[V Rajalakshmi]

During the year the company has written off export debtors as bad debts (export of goods ) in the books of account I would like to check with you the impact of GST on such non-recovery of export proceeds.

Thanks

Rajalakshmi.V

AI Summary

GST on Bad Debts: Impact of Non-Recovery of Export Proceeds and Need for RBI Waiver A company inquired about the implications of Goods and Services Tax (GST) on non-recovery of export proceeds, having written off export debtors as bad debts. One expert stated that non-receipt of export proceeds could lead to the supply being treated as domestic, incurring GST and forfeiting export benefits. Another countered that current GST laws do not demand GST on bad debts from exports, provided no refund of unutilized input tax credit was claimed. It was suggested that a waiver from the Reserve Bank of India might be necessary. The discussion also touched on potential recovery of refunds and the impact of exporting without a Letter of Undertaking (LUT).