NAMRATA (STUDENT) (84 Points)
04 November 2022Dear Sir,
clarification on GST Refund Received on export of goods on payment of duty whereas export sales proceeds not realized
export sales written off as Bad debts
will Apply to RBI to writeoff
whether GST Refund will be recovered or ...
Thanks
CA. ANKIT PANDYA
(CA)
(682 Points)
Replied 05 November 2022
In GST, Exports are treated as ZERO RATED SUPPLY. simply means ZERO Rate of TAX on the supply.
Exports can be made with either of the options, with payment of TAX (either by utilizing available ITC balance or by actual payment) OR Without payment of TAX under Letter on Undertaking.
We get the refund of TAX paid if we opt for the 1st option. This refund is not contingent on the realization of the Export proceeds.
Hence there is no question of recovery of TAX upon write-off of the Export proceeds.
Recovery needs to be checked for Export Incentives given under Foreign Trade Policy under which bank realization is must before we claim for licenses (MEIS / RODTEP,etc.)
CAclubindia
