Export material rejected and return back

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2018 Sir,

we have export our pump in netherland. due to some technical error customer reject the pump and send back to us. we want to repair the pump and reexport the same.
now please advise what can we do in this case.
question -
1. custom duty need to pay in this scenario for import of rejected material.and IGST credit will avail or not.
2. what to do in GST return? can we saw credit note against export invoice.
3. on which paper base we can move the material after repairing.

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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04 October 2018 At the time of importing rejected material for repair and replacement applicable customs duty requires to be paid. While re exporting the repaired goods duty draw back is admissible to the extent of 98% of import duty paid.