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Amendment in CGST Rules regarding Refund of IGST paid on export of goods or service

Amendment in CGST Rules regarding Refund of IGST paid on export of goods or service

Two Central Tax Notifications amending the CGST Rules issued on 09.10.2018 (11th and 12th amendment to CGST Rules, 2017)

Eleventh amendment to CGST Rules, 2017 (Retrospective w.e.f. 23.10.17) (Notification no. 53/2018)

This notification amends notification 39/2018-CT dated 04.09.2018

Notification No. 39/2018- CT dated 04.09.2018 had amended Rule 96(10) by stipulating that the claimant should neither have received supplies from suppliers who have availed benefits of specified notifications or the claimant himself should not have availed benefit of specified notifications.

This notification (dated 09.10.2018) restores rule 96(10) to the position that existed before the amendment carried out in the said rule by notification No. 39/2018- Central Tax dated 04.09.2018.


If Supplier Claims benefit of –
  1. Deemed Exports( Notification No. 48/2017-CT)
  2. 0.1% scheme ( Notification No. 40/2017- CT(R) and 41/2017-IGST(R)
  3. EOU Scheme (Notification 78/2017- Customs
  4. AA/EPCG etc ( Notification No. 79/2017- Customs

 Exporter cannot use the route of payment of IGST and taking refund under Rule 96. He needs to avail refund of unutilised ITC as per Rule 89(4B/ 4A)

 The above is only up to 8th October, 2018; The Notification No. 54/2018-CT dated 9th October, 2018 further changes the position as explained in following paragraph.

Twelfth amendment to CGST Rules, 2017 (Prospective) (Notification no. 54/2018)

This notification amends rule 96(10) to allow exporters who have received capital goods under the EPCG scheme to claim refund of the IGST paid on exports and align rule 89(4B) to make it consistent with rule 96(10).

Exporters, who have availed benefit of Customs notification 78 & 79 dated 13.10.2017, will not be allowed to claim refund of IGST on export of goods and services. However, this bar will not be applicable for import of capital goods made under the said notification. For inputs, refund would be available in terms of Rule 89(4B)

Refund of IGST paid on exports of goods or services


If exporter receives supplies on which following benefits availed-
  1. Deemed Exports( Notification No. 48/2017- CT)
  2. 0.1% scheme ( Notification No. 40/2017- CT(R) and 41/2017-IGST(R)

If exporter avails following benefits-

  1. EOU Scheme (Notification 78/2017-Customs)
  2. AA/EPCG etc ( Notification No. 79/2017- Customs, except for capital goods)

Exporter cannot use the route of payment of IGST and taking refund under Rule 96. He needs to avail refund of unutilised ITC as per Rule 89(4A) / (4B)