Export Return

[Sandeep Anand]

Dear Sir,

We have exported an item with the payment of IGST and claimed a refund for the same. Subsequently, the item was returned by the customer, and we re-imported it through the customs port.

Could you please advise us on the GST implications of this transaction? Specifically, we would like to understand:

1. The GST treatment for the returned item upon re-import.
2. Any adjustments or reversals required for the previously refunded IGST.

Your guidance on this matter will be highly appreciated.

Sandeep

[KASTURI SETHI]

Dear Querist,

What was the reason for return of exported goods ?

Were the exported goods found defective, if so, do you intend to re-export after repair ?

[KASTURI SETHI]

(i) Exported goods are received back in India. These are to be treated as home consumption for the purpose of applicability of GST. (if the same goods are not re-exported). If re-exported the identification is a must to the effect that the goods were the same.

(ii) If IGST has been refunded, then no reversal of ITC is required and pay GST in a normal way treating the said goods as home consumption as explained above.

(iii) All export benefits obtained at the time of export will be recovered.

(iv) For more details see Notification No. 45/2017-Custom dated 30.06.17 as amended by corrigendum 942[E] dated 22-07-2017, Notification Nos. 36/2021-Cus. dated 19-07-2021, 46/2023-Cus. dated 26-07-2023, and 39/2024-Cus. dated 23-07-2024

[KASTURI SETHI]

Re-import of exported goods — Recovery of export benefits given under Incentive and Reward Schemes under Chapter 3 of FTP

Instruction No. 3/2019-Cus., dated 13-8-2019

 

[Sandeep Anand]

Dear Sir,

Thanks for your detailed explanation.

Regards,

Sandeep

[Sadanand Bulbule]

Refer Issue ID No.119154 dated 10/06/2024 for further details.

[Shilpi Jain]

Notification 45/2017 is relevant as per which you would have to pay back the IGST claimed as refund.

Other export benefits like drawback, RoDTEP, etc. also will have to be paid back.

What would be done with the re-imported goods?

AI Summary

Re-imported exported goods treated as home consumption; previously refunded IGST must be repaid and export benefits recovered.
Re-imported exported goods not re-exported are treated as home consumption and attract GST on domestic supply; identification is required if re-export is intended. Previously refunded IGST must be repaid or recovered under customs and GST recovery mechanisms, while no reversal of input tax credit is required. Export-related incentives and benefits obtained at export (including drawback and scheme benefits) are also subject to recovery under the applicable customs notifications and FTP provisions.