GST refund on account of accumulated ITC for exports without payment of tax

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CA Raj Doshi

Practising CA

8944 Points Joined December 2013

CBIC circular 23.03.2020 requires exporters to compare export prices with domestic sales price of same product by similar sellers.

Any resolution for below issues ??

1. In case of CIF contract, insurance and freight component is apportioned to various product categories based on weight/value etc. However no such huge expenses incur in case of domestic sales

2. The export prices could differ in a big way if the export is done through air instead of sea.

3. It is possible that the goods exported are not sold in domestic market at all by same seller as well any other seller.

4. Its difficult to find similar placed sellers as there could be differences like volume,capital,workforce.

5. Export and domestic product and pricing database comes at very high costs.

What are the exporters practically submitting to the GST officials for sanction of their refund?

Replies (3)

CA Altamush Zafar

GST Consultant

15986 Points Joined March 2013

This is definitely very problematic. Proper valuation methods will have to be prescribed like that existent in customs act for these provisions to be successful.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Dear Raj C Doshi , can quote the circular & issued under custom or GST, because I do find the same .
Yes
I think the such comparison is made only in case of Import , when goods being import with low price & to control unfair competition in domestic market, the govt impose Anti Dumping Duty.