Credit note ag. export with payment of igst

This query is : Resolved

Jitendra (Querist)
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20 February 2019 Dear Sir,

We exported goods for 10000 USD against payment of IGST i.e.INR 35000.00 and got the refund of IGST paid. But the buyer sent us a debit note for USD 800.00 due to quality issue and asked credit note for the same.

We want to know, shall we have to return the refunded IGST to government against the credit note or reduce ITC for the equal amount?

CMA Bhavya

CMA Bhavya (Expert)
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21 February 2019 Dear Sir,

As per my view its is similar to import Purchases. you need not to reverse the refunded amount.

In first instance you have exported goods with payment and got refund of your payment so the transaction is complete.

In this scenario it may be treated as Purchase
regards,
Bhavya.P