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

Circular No. 233/27/2024-GST 

F. No. CBIC-20001/6/2024-GST 
Government of India  
Ministry of Finance 
Department of Revenue  
Central Board of Indirect Taxes and Customs 
GST Policy Wing 
*** 

New Delhi, dated the 10th September, 2024 

To,  

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / 
Commissioners of Central Tax and Central Tax (Audit) (All)  
The Principal Directors General / Directors General (All)  

Madam/Sir,  

Subject: Clarification regarding regularization of refund of IGST availed in contravention of rule 96(10) of CGST Rules, 2017, in cases where the exporters had imported certain inputs without payment of integrated taxes and compensation cess - regarding. 

Sub-rule (10) of rule 96 of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) provides for a bar on availment of the refund of integrated tax (IGST) paid on export of goods or services, if benefits of certain concessional/exemption notifications, as specified in the said sub-rule, have been availed on inputs/raw materials imported or procured domestically. In this regard, references have been received from the field formations and trade/ industry wherein clarification has been sought on whether refund of integrated tax paid on exports of goods by a registered person can be regularized in a case where the registered person had initially imported inputs without payment of integrated tax and compensation cess, by availing the benefits under Notification No. 78/2017-Customs dated 13.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017, but subsequently, at a later date, the said person has either paid the IGST and compensation cess, along with interest, on such imported inputs or is now willing to pay such IGST and compensation cess, along with interest.

For full notification please refer to the attachment