Debit Note for Exports with payment, Goods and Services Tax - GST

[Manish Gadia]

ABC Enterprises has not obtained LUT and are exporting goods with payment of IGST. During the month of October 2018 they have exported goods on which IGST was duly discharged and returns (GSTR-1 & GSTR-3B) where filed accordingly. Data from GST Portal is transmitted to ICEGATE portal for processing of IGST Refund.

Thereafter in the month of December 2018 they came to know that they have forgotten to charge some amount in the invoice raised. Accordingly they have to raise a Debit Note for such amount. Now what is the recourse available to them?

1. Should they pay IGST on the amount of Debit Note?

2. If no, why?

3. If yes, how will they get refund of IGST paid on Export through Debit Note?

4. Does ABC Enterprises needs to get the shipping bill amended?

Posts / Replies

[Yash Jain]

Dear Sir, Y

Yes. Raise debit note with GST and disclose in 1/3b.

Take BRC for ITC refund.

[Madhavan iyengar]

Since this is basically a procedural issue ( as debit note principle will apply as applicable for domestic supplies)

Kindly refer to GSTR-1 Instructions No. 13 Table 9 ( amendments of B to B supplies) which is used to capture this information "states that supplies involving exports / SEZ unit or SEZ developer/ deemed exports reported in Table 6" (vi) shipping bill to be provided only in case of exports transaction amendments. the GSTIN will be blank for export transactions.

[KASTURI SETHI]

Dear Querist, In my view, valuation figures mentioned in shipping bill must match with other related docs including books of amount otherwise it will amount to misdeclaration. Earlier there was a time when receipt of foreign exchange (BRC) was sufficient to be accepted as proof of export but now a days there are so many factors to constitute proof of export. BRC is no more accepted as proof of export. It has become optional. Moreover, receipt of additional amount on account of export proceeds is also a sort of transaction.Pl note that Govt. is very strict regarding undervaluation or overvaluation whether it is home consumption or export purpose. How to go ahead it is up to you.