Dear Experts,
A manufacturer sales his goods in the domestic market as well as export the same. Let’s the sale value of any item is Rs. 100/- then same item being exported @ Rs. 200/-.
Now Department took the matter and being forwarded to Customs for overvaluation of goods to taking more export incentives including IGST refund.
Please guide:
1. Is there really an issue in the above said valuations?
2. Can department forward the matter to customs ?
3. Can they insist the domestic sale as undervalued and demand duty according to the rate of export?
Debate on Export Overvaluation: Should IGST Refunds Be Adjusted Based on Inflated Export Prices? Rule 89(4)(c) in Focus. A manufacturer sells goods domestically and exports them at higher prices, raising concerns about overvaluation to gain export incentives, including IGST refunds. The discussion involves whether the department can forward such cases to Customs and demand duties based on export rates. One expert cites Rule 89(4)(c) of the CGST Rules, which was deemed ultra vires by the Karnataka High Court. Participants debate if transaction value should dictate valuation and whether excess refunds claimed based on inflated export values must be returned with interest and penalties. The consensus suggests transaction value is key, and disputes may arise if export proceeds are not fully realized. (AI Summary)
TaxTMI 
TaxTMI 
