GST
Goods returned or short shipped after export
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Facts
Refund is only for goods actually exported. If goods were short shipped or the export was cancelled, the shipping bill is amended and the refund is limited to what left India.
Provisions and law
- Rule 96, CGST Rules 2017Shipping bill is deemed a refund application for IGST paid on exported goods once the EGM and a valid GSTR-3B are filed
- Sec 16(3), IGST Act 2017Zero-rated supply can be made on payment of IGST with refund of that tax
Analysis
If 100 units were invoiced and 80 exported, IGST refund is for 80. For the 20, issue a credit note or treat as a domestic supply. If goods are re-imported later, refund already received may need to be paid back.
Conclusion
- Get the final export quantity from customs records.
- Amend the shipping bill if needed.
- Adjust the invoice through credit note.
- Repay refund for re-imported goods where required.
A Savvy can do this for you
Refund of IGST paid on export of goods via shipping bill
₹4,999
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