I got an order from overseas customer who paid me in foreign corrency but all delivery to.be made within India. Rejected goods amount to be return in foreign currency. IGST or CGST and SGST is applicable

Reply—As per section 2(5) of IGST Act, “export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India.

In the above case, goods are being supplied in India, so this will not considered as export of goods.

Place of supply and location of supplier are the key element to determine, whether a transaction will attract IGST or CGST and SGST. Where the location of supplier of goods and Place of supply of goods are in same state, such transaction is termed as intra-state transaction, accordingly CGST and SGST will applicable.

Please refer section 10 of IGST Act.