Duty Drawback against Exports

[Kaustubh Karandikar]

XYZ exported the goods under LUT without payment of GST. The foreign customer had subsequently refused to pay part payment against the supply. XYZ got this unpaid amount as refund from ‘Export Credit Guarantee Corporation (ECGC)’. The amount not received from the customer XYZ had claimed Duty Drawback against this supply. Will the duty drawback claimed needs to be partly paid back to the extent of the amount not received from the customer?

[Rajagopalan Ranganathan]

Sir,

The reply to your question is yes.

AI Summary

XYZ Must Repay Duty Drawback for Unpaid Export Amount Under LUT Without GST Payment XYZ exported goods under a Letter of Undertaking (LUT) without GST payment. When the foreign customer refused part of the payment, XYZ received a refund for the unpaid amount from the Export Credit Guarantee Corporation (ECGC). XYZ also claimed Duty Drawback for this supply. The query was whether the Duty Drawback should be partially repaid due to the unpaid amount from the customer. The response confirmed that XYZ must repay the Duty Drawback to the extent of the amount not received from the customer.