TaxTMI 
TaxTMI 
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
Delay in recovery of Export Proceeds
12 Apr 2022 
19 Replies 
26144 Views Asked by
Non receipt of export proceeds: GST reclassification risks and recovery where refunds or credits were claimed.
Non-receipt of export proceeds raises competing GST positions: one view treats such supplies as reclassified to domestic supply attracting GST, interest and forfeiture of export benefits; opposing views stress absence of a statutory provision that automatically changes export character solely due to non-receipt and note recovery risks where refunds or ITC have been claimed. Rule 86B and proposed amendments to section 16(3) are referenced but not fully operative; FEMA and RBI waiver/write-off considerations are relevant where proceeds remain unrealized. (AI Summary)
Non-receipt of export proceeds raises competing GST positions: one view treats such supplies as reclassified to domestic supply attracting GST, interest and forfeiture of export benefits; opposing views stress absence of a statutory provision that automatically changes export character solely due to non-receipt and note recovery risks where refunds or ITC have been claimed. Rule 86B and proposed amendments to section 16(3) are referenced but not fully operative; FEMA and RBI waiver/write-off considerations are relevant where proceeds remain unrealized. (AI Summary)