Regarding mismatch ITC.

This query is : Resolved

jignesh sitapara (Querist)
Follow

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.

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

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

Message likes : 1 times

jignesh sitapara

jignesh sitapara (Querist)
Follow

16 June 2025 Hartley Thank you very much Sir,

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now