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Refund of GST - IMPG in case of Exported goods returned before delivery

03 January 2024

Dear respected members,

Our client made an export (without payment of tax) last year. However, before delivery could take place, some norms in that country changed. As a result, they rejected the shipment and requested us to modify the goods to meet the amended norms.

Upon reimporting the goods, the officer at the port imposed GST, which was reflected in our GSTR-2B IMPG section. At that time, the officer assured our client that the GST would be refunded later. Now, our client seeking the refund, but we dont know how to , in this type of case

Please advise and provide assistance.

Thank you.

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3 Replies

CA Raj Doshi (Practising CA) (8795 Points)
Replied 04 January 2024

Dear Jitendra Negi Sir,

I am assuming that you have claimed IGST credit on the reimport of the goods. However, you are unable to convert the igst lying in electronic credit ledger back to cash. Am I right sir ?

Rgds-CA. Raj Doshi-R C D & Co.-Chartered Accountants- Kandivali West-Mumbai

1 Like

Jitendra Negi (4 Points)
Replied 06 January 2024

Respected Sir,

we have not claimed that credit as ITC, as we are unsure whether we should do so. The officer assured our client that a refund would be processed, and our client want a cash refund. However, both the CBIC and ICEGATE helpline have declined to provide any statement in this case. Sir, could you please clarify what IMPG credit is and whether it is refundable in cash or not ?

Thank You

CA Raj Doshi (Practising CA) (8795 Points)
Replied 06 January 2024

Dear Sir, Please claim credit under GSTR 3B if the timelimit to claim hasnt expired. No direct refund is possible. If amount needs to be refunded, then separate refund application under gst needs to be applied under correct category.

2 Like