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Export with payment IGST under AA

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Gurumurthi Ramnathan

B.Com

51 Points Posted on 21 April 2020

raw materials are purchasing from SEZ units under AA without payment of Duty. other than RM we are purchasing of payment of duty. so, accumulative of ITC we are dispatching of export under AA with payment of IGST for refund. is it applicable under rule 96(10)? or accumulative of ITC can we get refund under rule 89 4a 4b

Replies (3)

Quick Summary

This discussion clarifies the applicability of exporting with IGST payment under an Advance Authorisation (AA) scheme, specifically concerning Rule 96(10) of the CGST Act. It explains that refunds for input tax credit (ITC) on inputs and input services used for such exports are claimable under Rule 89. Additionally, it addresses the scenario where BCD exemption is availed but GST is paid on raw materials, allowing for export with tax payment and subsequent refund.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 22 April 2020

Dear

As per clause 4(A) & 4(B) under Rule 89 of CGST Act : The supplier who has availed the Benefits under Notification 48/2017 CT , 40/2017 CT (R) , 78/2017 & 79/2017 Custom can claim refund of input tax credit in respect of input & input Services used for making such export.

Now come to 2nd part of Query , which I have replied in your earlier Query also.
In term of Notification 16/2020 CT , the Explanation being inserted under rule 96(10) of CGST Act is : Supplier who has availed the Exemption of BCD but paid GST on the raw material can export with payment of tax & can be now claim refund for the same .