Delay in recovery of Export Proceeds, Goods and Services Tax - GST

[V Rajalakshmi]

During the year the company has written off export debtors as bad debts (export of goods ) in the books of account I would like to check with you the impact of GST on such non-recovery of export proceeds.

Thanks

Rajalakshmi.V

Posts / Replies

[Amit Agrawal]

W.r.t. last post from Ms. V Rajalakshmi, my views are as under:

A. Rule 86B (inserted vide Notification No. 16/2020 – Central Tax dated 23-03-2020) - at best - covers the situation where refund of 'ITC' was claimed against goods exported without payment of taxes under LUT (i.e. under clause (a) of unamended Section 16 (3)).

B. Said Rule 86B does not cover situation where goods were exported with payment of taxes and refund was claimed against taxes so paid (i.e. under clause (b) of unamended Section 16 (3)).

C. Amended Section 16 (3) (as inserted vide Finance Act, 2021) is NOT yet made operational.

Hence, there is no legal mechanism available to GST Dept. to recover refund already granted to your client (i.e. refund of taxes paid by your client against 'goods exported' under clause (b) of unamended Section 16 (3)).

Above are strictly my personal views and same should not be construed as professional advice / suggestion.

[Amit Agrawal]

There is mistake in above post of mine. Said Rule 86B indeed prescribes recovery of refund granted even against 'goods exported' under clause (b) of unamended Section 16 (3). My apologies!

[Sanjay Palapu]

Can we get the refund of ITC paid on delayed receipt of proceeds under the LUT for services?

Thanks

Sanjay

[Amit Agrawal]

Dear Shri Sanjay Palapu Ji,

To get better responses to your query and not to get mixed up / confused with fact/s of any other query, it is suggested that you should raise a separate / independent query sharing all your relevant facts and points of doubt / concern.