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.

[Shilpi Jain]

You would have to explain the scenario to the department that you have disclosed the exports in GSTR-1 and 3B after reduction of the CN which the EGM has also considered.

AI Summary

Export sales adjustment affects refund entitlement; disclose reduced exports in GSTR filings and explain to the department. The taxpayer issued a credit note for a cancelled export invoice and could not upload the original invoice to Export Sales Annexure due to lack of an EGM; the department reduced export sales and the CN during refund assessment. The advised course is to explain to the department that the reduced export value has been disclosed in the GSTR filings (GSTR 1 and GSTR 3B) and that the EGM has been considered.