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Treatment of Refund in case of Re-Import

03 April 2020

Hello experts,

In my company, I have exported goods, the same has returned by clients due to defect. Since the same is exported under LUT hence I had claimed refund. Further, I am 100% export oriented unit.
Now my question is whether I have to refund input credit which I had received. Or Refund should be under 18% of Taxable Value or I can adjust refund by the same short claiming in subsequent month ?

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6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 April 2020

You Must reverse the refund claimed with interest of 24% as prescribed in section 50 of CGST Act , & Moreover if any export incentive/benefits being availed need to be surrender

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Nilkesh Parmar (106 Points)
Replied 10 April 2020

Pankaj sir,

1. Can I repay the refund through DRC-03 by utilising ITC ?

2. Can reavail the ITC on the same through GSTR-3B ?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 16 April 2020

dear

since you have reced. the refund for the same in your bank account & the re-credit of of refund cannot done by issuing order in PMT-03, hence before you reced. any SCN in RFD-08, under section 54, read with section 73 or 74 of cgst act its better you deposit the same in cash ledger with interest & file drc 03 & for re-credit claim itc in your GSTR 3b

note : it will much better if above shall be brought to the knowledge of jurisdiction tax officer