Regarding mismatch ITC.
This query is : Resolved
16 June 2025
Dear Expert, My client has been exported in July 2021 at JNPT port with pay IGST. But container was damage at the time lifting the container by crane, Hence goods are damaged. Therefore the same damaged goods were returned from JNPT port to my premises. Now IGST credit in August 2021in GSTR-3B which was paid at the time of export. Now, the Department has issued DRC-01A for mismatch ITC with 3B & 2A. Now what to do in this case ? Please provide me any of solutions.
16 June 2025
File reply to DRC-01A on GST portal under Form DRC-01A Part B explaining the following:
The ITC reflected in GSTR-3B for August 2021 pertains to IGST paid at the time of filing shipping bill for intended export made in July 2021. However, due to damage to container during crane lifting at JNPT port, the goods could not be exported and were returned to factory premises. Therefore, the export never materialized, and we reversed the shipping transaction and accounted for the IGST accordingly. Since the export did not happen, we have not claimed refund of IGST and have adjusted it in books as credit. The mismatch arises because GSTR-2A reflects vendor-side supplies, while this was an IGST paid on outward supply. Hence, it cannot appear in 2A. Kindly drop the proceedings.”
Ensure You Have Done the Following:
Check if you claimed any IGST refund for that export — if yes, you must repay the refund.
If you did not claim a refund, then availing credit of IGST paid is possible since the goods are back in your possession, and the export failed.
Maintain the following documents:
Shipping Bill copy showing export attempt
Port authority certificate/letter confirming container damage
Return inward documents for goods returned from JNPT
Stock inward entry and inventory adjustments
Chartered Accountant certificate or a declaration confirming no refund claimed
The ITC reflected in GSTR-3B for August 2021 pertains to IGST paid at the time of filing shipping bill for intended export made in July 2021. However, due to damage to container during crane lifting at JNPT port, the goods could not be exported and were returned to factory premises. Therefore, the export never materialized, and we reversed the shipping transaction and accounted for the IGST accordingly. Since the export did not happen, we have not claimed refund of IGST and have adjusted it in books as credit. The mismatch arises because GSTR-2A reflects vendor-side supplies, while this was an IGST paid on outward supply. Hence, it cannot appear in 2A. Kindly drop the proceedings.”
Ensure You Have Done the Following:
Check if you claimed any IGST refund for that export — if yes, you must repay the refund.
If you did not claim a refund, then availing credit of IGST paid is possible since the goods are back in your possession, and the export failed.
Maintain the following documents:
Shipping Bill copy showing export attempt
Port authority certificate/letter confirming container damage
Return inward documents for goods returned from JNPT
Stock inward entry and inventory adjustments
Chartered Accountant certificate or a declaration confirming no refund claimed
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16 June 2025
Hartley Thank you very much Sir,
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