Regularization of IGST Refunds Claimed in Violation of Rule 96(10)

Last updated: 25 September 2024

Notice Date : 10 September 2024

Quick Summary

This circular provides clarification on the regularization of IGST refunds that were claimed in violation of Rule 96(10) of the CGST Rules, 2017. Specifically, it addresses situations where exporters imported inputs without paying integrated tax and compensation cess, but later paid these dues (or are willing to pay them) along with interest. The clarification aims to provide guidance to field formations and the trade on how to handle such cases.

Circular No. 233/27/2024-GST F. No. CBIC-20001/6/2024-GSTGovernment of India Ministry of FinanceDepartment of Revenue Central Board of Indirect Taxes and CustomsGST Policy Wing*** New Delhi, dated the 10th September, 2024 To, The Principal Chief Commissioners / Chief Commissioners / Principal C

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FAQ :

Rule 96(10) of the CGST Rules, 2017, states that a refund of integrated tax (IGST) paid on exported goods or services cannot be claimed if benefits of certain specified concessional or exemption notifications were availed on imported or domestically procured inputs.

This circular clarifies the situation where an exporter imported inputs without paying integrated tax and compensation cess, by availing benefits under Notification No. 78/2017-Customs or 79/2017-Customs, but subsequently paid the due taxes and interest.

Yes, the circular addresses the regularization of IGST refunds in cases where the exporter has either already paid the IGST and compensation cess with interest on the imported inputs, or is now willing to pay them.

This clarification is for the Principal Chief Commissioners, Chief Commissioners, Principal Commissioners, Commissioners of Central Tax and Central Tax (Audit), and Principal Directors General/Directors General.