Sales return under IGST on exports

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to issue credit notes for export sales where IGST was paid, specifically when a buyer requests a credit for goods shortages. The advice given is that a credit note should generally be issued without IGST, as the buyer cannot reverse Input Tax Credit (ITC) in this scenario, which is a condition for including GST on credit notes under Section 34.

Yasotha Prakash

Yasotha Prakash (Querist)

25 January 2021 dear sir,
we are doing exports under payment of IGST. now our buyer in foreign country ask us to make a credit of $648.00 for shortage of goods.
1.shall i make credit note with IGST or without IGST?
2.if i make credit note,what are the points to keep in GST?
kindly clarify me sir

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

26 January 2021 1.You have to make credit note with IGST.

Lekhraj sood

Lekhraj sood (Expert)

27 January 2021 In my view you should make credit note without GST.In section 34 , the GST can be included in credit note only when the buyer reverses the ITC to that extent.Since in this case it is not possible you can not include IGST in credit note.

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