Export sales not realised payment not received from foreign client

Non-realisation of export proceeds does not, by itself, require repayment of IGST or duty drawback under GST. Where goods were exported on payment of IGST and the export proceeds remain unrealised beyond the period permitted by RBI (including any valid extension), the GST refund mechanism may require repayment of the refund attributable to those exports, with applicable interest. The treatment depends on whether an IGST refund was actually received; if not, there is no refund to repay. Confirm the applicable recovery/payment mechanism and interest period with the jurisdictional GST authority before paying.

• Keep the export invoices, shipping bills, bank realisation certificates/FIRCs, RBI extension and evidence that recovery is no longer possible. Record the bad-debt write-off in the books; a commercial write-off does not itself extinguish the GST consequence.
• Duty drawback is governed by customs law, not GST. Whether it must be repaid depends on the drawback scheme and whether the claim was conditional on realisation of export proceeds. Verify the specific drawback sanction and current customs procedure before remitting.
• There is no general GST “write-off” filing that substitutes for these steps. Reconcile the affected shipping bills and refunds, then make any required repayment through the prescribed route and retain proof.

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