TaxTMI 
TaxTMI 
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 ?
Credit note to foreign buyer
25 Feb 2023 
2 Replies 
5328 Views Asked by
Credit note to foreign buyer may be issued but requires foreign remittance permissions and negates GST export benefits.
A merchant exporter may issue a credit note to a foreign buyer who rejects exported goods, but issuance without receipt of consideration engages foreign exchange management compliance and may require permissions for foreign remittance; it also eliminates entitlement to export-linked GST benefits since no consideration is received. (AI Summary)
A merchant exporter may issue a credit note to a foreign buyer who rejects exported goods, but issuance without receipt of consideration engages foreign exchange management compliance and may require permissions for foreign remittance; it also eliminates entitlement to export-linked GST benefits since no consideration is received. (AI Summary)