Referring to the trail mail, does any further clarification to this issue needed as stated by you? I am also not able to find any provision for return of tax paid goods supplied for export, on payment of IGST as well as under LUT. Can you please suggest any procedure to be followed in this regard?
Answer:
There is no need to discuss the returning of goods in CGST Act because every supply is taxable. The concept of levy of duty on manufacturer is no more. That is the reason, the lawmaker has not framed law in parallel to earlier Rule 16(A), 16(B) or 16(C). Now returning of goods in case of export is to be governed by Customs procedure. In case goods are returned forever, it will be subjected to tax as much as is leviable in case of import. Out of this tax, IGST is available for ITC. Alternatively, the exporter can import goods by doing the rework or rectification as per Notification No. 158/95 dated 14/11/1995 on execusion of bond. In this case, no tax will be levied on import subject to fulfillment of condition given in the notification. (Reply dt. 10/10/2017)