Impact of Export Sales CN on Refund on Export

[umeshkumar jhawar]

Dear Experts

One of our client have Export of Rs. 10.00 lakh during December 2023. Here one of Invoice having Sale Value Rs. 1.00 lakhs for which order cancelled after reaching the Goods at Dockyard hence we issued CN against that Invoice.

Now while calculating Amount of Export Sales for refund purpose as EGM was not generated for original Invoices that was not getting uploaded online on Export Sales Annexure B and CN was again reduced by Department while assessing Refund hence Export Sales considered Rs. 8.00 lakhs instead of Rs. 9.00 lakh.

Here CN issued in Same month i.e. December 2023.

Kindly advise with legal Supporting.

Here Second scenario what if Sales got cancelled in Next months and CN was issued in January 2024.

AI Summary

Handling Export Sales Cancellations: Credit Note Impact on Refunds and Reporting in GSTR-1 and 3B A client exported goods worth Rs. 10 lakh in December 2023, but an order valued at Rs. 1 lakh was canceled after reaching the dockyard, leading to a credit note (CN) issuance. The export sales refund calculation was affected as the original invoices were not uploaded online, resulting in the department reducing the sales amount to Rs. 8 lakh. The CN was issued in December 2023. The query seeks legal guidance on handling this situation and a scenario where sales are canceled in the following month with the CN issued in January 2024. The response suggests explaining the situation to the department, noting the exports were disclosed in GSTR-1 and 3B.