Refund of GST on export of services with payment

Hi Bhaumik,

This is a common issue in GST refund claims on export of services when there is an amendment from WPAY (With Payment) to WOPAY (Without Payment) in GSTR-1, but IGST has already been paid on those invoices.

Key points and options:

Refund on Export of Services With Payment (WPAY):
Refund claim is allowed for IGST paid on export of services where payment is received or deemed to be received within 1 year from invoice date.
Change from WPAY to WOPAY in GSTR-1:
When invoices are amended to WOPAY (meaning payment not received within 1 year or not received at all), those invoices no longer qualify for refund of IGST.
IGST paid on those invoices (now WOPAY):
Since IGST was paid, but invoice is now classified as WOPAY, the refund application system blocks the claim.
What can you do now?
- Option A: Reverse the IGST paid (if allowed)
  If you have not reversed IGST in your returns or books, you should reverse the ITC and IGST related to these invoices as per rules, since payment is not received. This means you can't claim refund but have to pay tax accordingly.
- Option B: No refund, but carry forward ITC
  Since the IGST is paid but payment is not received, no refund is allowed. You may carry forward ITC to next periods as per law.
- Option C: Litigation / Representation
  If you believe payment was received but due to delay or mismatch amendment happened, you can represent to GST authorities or seek legal opinion to restore the original WPAY status and claim refund. But this may be time-consuming and risky.
About amendment date expired:
Since the amendment period (original return filing period) is over, you cannot further amend GSTR-1 for that FY. So no correction is possible now.

Summary and recommendation:

Unfortunately, you cannot claim refund on IGST paid on invoices that have been amended to WOPAY in your GSTR-1.
You should treat IGST paid on such invoices as final and not eligible for refund.
Ensure compliance by reversing ITC or adjusting accounts accordingly.
In future, try to track payment receipt timelines to avoid such issues.

If you want, I can help you draft a representation letter to GST authorities or suggest how to handle the reversal in your books.

Would you like that?