I am exporting goods without payment of Tax (i.e under LUT). The value shown in Shipping Bill is Rs. 16.89 cr whereas value as per commercial invoice is Rs. 16.91 cr. After the goods were exported we issued a credit note of Rs. 27.95 Lakhs. So final amount to be received is Rs. 16.63 cr (16.91 cr - 27.95 Lakhs) whereas value as per shipping Bill is Rs. 16.89 cr. Please guide how to File GSTR-1 and GSTR-3B in this situation so that there will be no problem while claiming refund of ITC.

Reply:  The CBIC issued a circular No.37/11/2018-GST dated 15.03.2018 which clarifies that valuation has to be strictly followed under GST Act only. The relevant extracts of the circular are as follows.

“9. Discrepancy between values of GST invoice and shipping bill/bill of export: It has been brought to the notice of the Board that in certain cases, where the refund of unutilized input tax credit on account of export of goods is claimed and the value declared in the tax invoice is different from the export value declared in the corresponding shipping bill under the Customs Act, refund claims are not being processed. The matter has been examined and it is clarified that the zero rated supply of goods is effected under the provisions of the GST laws. An exporter, at the time of supply of goods declares that the goods are for export and the same is done under an invoice issued under rule 46 of the CGST Rules. The value recorded in the GST invoice should normally be the transaction value as determined under section 15 of the CGST Act read with the rules made thereunder. The same transaction value should normally be recorded in the corresponding shipping bill / bill of export.

9.1 During the processing of the refund claim, the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export should be examined and the lower of the two values should be sanctioned as refund.