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TMI BlogDifferent rates of goods for export and domestic salesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, A manufacturer sales his goods in the domestic market as well as export the same. Let s the sale value of any item is Rs. 100/- then same item being exported @ Rs. 200/-. Now Department took the matter and being forwarded to Customs for overvaluation of goods to taking more export incentives including IGST refund. Please guide: 1. Is there really an issue in the above said valuat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions? 2. Can department forward the matter to customs ? 3. Can they insist the domestic sale as undervalued and demand duty according to the rate of export? - Reply By Amit Agrawal - The Reply = Clause (C) of rule 89 (4) of CGST Rules, 2017 reads as follows: Turnover of zero-rated supply of goods means the value of zero-rated supply of goods made during the relevant period without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less , other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both; ] - Reply By Venugopal Gella - The Reply = Recently, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Karnataka High Court had quashed Rule 89(4)(c) in the case of M/s Tonbo Imaging India Pvt Ltd. Vs UOI [2023 (4) TMI 46 - KARNATAKA HIGH COURT] by holding it to be ultra vires the provision of the GST Act , including being violative of Articles 14 and 19 of the Constitution and the provision is arbitrary, unreasonable and vague. - Reply By Bijal Doshi - The Reply = Agree with Venu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gopal Sir as far as refund issue is concerned, but can department decide transaction value instead of person who is actually doing export? Valuation rules are clear on it that it should be on transaction value, so even if sold at 100 domestically while exported at 200 ( with good margin) can't it be normal business practice - Reply By Rajesh Kumar - The Reply = Sir, It means party was elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible only as per the calculation based on 1.5% value of the domestic value of the goods. Accordingly, the proportionate ITC on account of excess value declared than 1.5% was not eligible and taken wrong refund on export with and without payment of duty? - Reply By Shilpi Jain - The Reply = In case you are able to show the receipt of consideration there should be no further dispute regarding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver valuing your exports - Reply By Rajesh Kumar - The Reply = Ma am What about the excess claimed refund as per the above provisions on account of declaring more value than 1.5 of the domestic value for same item and same month ? They are insisting to declare that proportion of refund as wrongly taken refund and to return with interest and penalty. All BRCs are received but some are received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after 270 days. What action can they take for these late received BRCs ? - Reply By raghunandhaanan rvi - The Reply = Sir, Transaction value is the primary basis for the valuation of export goods. ( i.e. invoice value). It is evident from Export orders or Letters of Credit or contracts. Duty drawback is given subject to the realization of the entire remittance of export value via BRC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the shipper could realize entire export proceeds, the issue of overvaluation of goods not survive It is very clear without doubt that no wide buyer will agree to the overvaluation of goods since the buyer has to suffer customs duty on such value - Different rates of goods for export and domestic sales - Query Started By: - Rajesh Kumar Dated:- 16-4-2023 Goods and Services Tax - GST - Got 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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