Question21:

We have Imported machine in pre GST regime (at the time of excise law in F.Y. 2015-16), on which CVD and Addl. Duty credit was availed. Now, after using some parts / spares of machine defected, hence; as per terms of agreement supplier (replaced) such parts / spares and at the time of import we paid IGST on the same. Now we intend to return (export) the said old machine parts to supplier.
In this case can we export such goods under LUT. Or GST applicable to us in terms of schedule I or required to reverse proportionate GST credit?
Because, after export we have not received payment in foreign exchange.
 
Answer:

Every transaction whether relating to old goods or new goods is now covered under GST As per section 7 the term supply covers the transaction to be made by you Although as principle you are right if sending goods without tax against LUT Because in replacement you are getting goods and the consideration can be in kind But the LUT procedure requires payment in foreign currency and BRC of it 
For import you have paid IGST and have taken credit of the same For export you can go for LUT only if the payment is received To avoid any technical issue in future you should settled account pay for import and take payment for export here will be no effect in accounting because it is simply debit or credit but in future there will be no scope of litigation. (REPLY dt. 3/2/2018)