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Export Refund under two situations

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Kaustubh Ram Karandikar

Corporate Consultant- Central Excise &am

519 Points Posted on 09 March 2023

XYZ is having two types of supplies 1) Exporting manufactured goods or goods received from a supplier who is charging full GST which in turn is exported by XYZ. 2) XYZ is acting as a merchant exporter where the supplier of goods is charging 0.1% GST which in turn is exported by XYZ under LUT. Can XYZ pay IGST on exports under first situation and claim refund of the same and also act as a merchant exporter for the second situation or he is not allowed to do the same since prohibited by Rule 96(10) of CGST Rules?

Replies (2)

Quick Summary

This discussion clarifies whether a business can claim GST refunds for exported manufactured goods while also operating as a merchant exporter with concessional GST supplies. The consensus is that these are distinct transactions and can be managed separately without violating Rule 96(10) of the CGST Rules. Therefore, a business can pay IGST on exports in the first situation and claim a refund, while also acting as a merchant exporter in the second scenario.