Is IGST refundable on a rejected material by customer
One of our client rejected imported material. The client paid customs and IGST and demanding foreign company to pay IGST and custom to them on rejected material. Does any one knows or have experience in such cases? Can client get refund of IGST if imported material is sent back to the country of origin?
Looking for some experts or consultant to help with this process more
Looking for some experts or consultant to help with this process more
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I have forwarded the query to GST council , but not sure if I will get any response If I hear something from them or find anything useful , i will share BTW product rejection is based on technical disagreement on testing procedure and standards and nothing to do with bad quality. The manufacturer is willing to take the product back and replace fee of cost, but the government should have some process for such cases If the cost is trivial , manufacture just replaces the product In this case cost is very high and so IGST and custom is significant amount of money to be refunded to the client. more
Dec 19
Your client should be compensated for the Customs and other taxes charged from on the rejected materials that was returned to the seller by the foreign supplier who produced such materials. This is undue enrichment of the govt, collecting taxes on un-consumable rejected qualities which they are supposed to quality test before marketing. more
Dec 19
looking at it just from a "commerce" perspective, ideally every value or charge needs to be refunded for a product returned except the transaction charges, whatever be the modus of doing that transaction.....internet or POS or whatever other barter! isn't it the same for International as well?! international transacting charges and whatever portion of shipping n handling and octroi is all what needs to be deducted and the pdt exchange value to be returned!!! more
Dec 18
Now, this is a very valid query posted by Mr Anil Goyal. Who knows, many similar importers may be facing the same dilemma. Ideal would be to contact the relevant authority on IGST in such a case. Mr Garg's comment does help. It may however be worthwhile to probe and do some more recce with relevant authorities. I hope v. much that some member can advise Mr Anil Goyal which office to approach for clarification. more
Dec 18
Custom duty component is just 5% but the IGST is 28% and my question is about IGST Who can apply for IGST refund? That is not clear and getting very misleading answers from various sources more
Dec 17
