Credit note to foreign buyer

[HASMUKH PATEL]

We Export our good . The foreign buyer found deficiancy in goods and reject it.

If we return it to india , it is costlier for us. We do not want to return it.

Now the issue is that, we can issue credit note to foreign buyer ?

AI Summary

Company Considers Credit Note for Rejected Exported Goods; Must Check FEMA, RBI Rules, GST Benefits Impacted A company faced an issue where a foreign buyer rejected their exported goods due to deficiencies. Returning the goods to India was deemed too costly, so the company considered issuing a credit note instead. A respondent confirmed that a credit note could be issued but advised checking requirements under FEMA and RBI permissions since no foreign currency would return to India. Additionally, GST export benefits would not apply as no consideration is received. The company, being an export house, inquired about writing off 10% of the previous year's export turnover according to RBI guidelines.