Denial of refund of IGST to Advance-Authorisation holders is valid but operates prospectively w.e.f October 23, 2017

Last updated: 31 October 2020

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Quick Summary

The Gujarat High Court has ruled that the denial of IGST refunds to Advance Authorisation (AA) holders is valid, but this rule should only apply prospectively from October 23, 2017. The court upheld Rule 96(10) of the CGST Rules, which prevents exporters from claiming an IGST refund if they have procured inputs under an AA license. This decision clarifies that the restriction on claiming refunds for AA license holders is effective from October 23, 2017, not from the initial implementation of the rule.

Court :
Gujarat High Court

Brief :
The Hon'ble HC, Gujarat in Cosmo Films India v. Union of India &Ors. [R/SLP No. 15833/2018 dated October 20, 2020] upheld the validity of rule 96(10) of the Central Goods and Services Tax Rules, 2017 ("CGST Rules") and rules that notification is required to be made applicable prospectively only w.e.f. October 23, 2017 and not prior thereto from the inception of Rule 96(10) of the CGST Rules w.e.f. July 1, 2017.

Citation :
R/SLP No. 15833/2018 dated October 20, 2020

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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