Exporters Win IGST Refund Battle: Court Orders Full Refunds with 6% Interest on Zero-Rated Supply Exports

The Gujarat HC allowed multiple writ applications seeking IGST refunds for goods exported as 'Zero Rated Supplies.' Following precedents established in Amit Cotton Industries and Awadkrupa Plastomech cases (the latter affirmed by SC), the court directed authorities to sanction the refunds with 6% simple interest calculated from the shipping bill date until actual refund. The court also ordered prompt settlement of any unpaid differential duties. This ruling reinforces exporters' right to timely IGST refunds on zero-rated supplies under GST law.

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Issues:
Sanction of IGST refund for goods exported as 'Zero Rated Supplies'

Analysis:
The High Court of Gujarat heard multiple writ applications with similar issues raised, which were disposed of together. The lead matter was Special Civil Application NO.6752 of 2020. The writ applicant sought relief under Article 226 of the Constitution of India, requesting the court to direct the respondent authorities to sanction the refund of IGST paid for goods exported as 'Zero Rated Supplies.' The applicant also requested interest on the refund amount and interim relief. Mr. D. K. Trivedi represented the petitioner, while Mr. Utkarsh R Sharma represented the respondents.

The main issue in the writ application was the sanction of IGST refund for goods exported as 'Zero Rated Supplies.' The court noted that this issue had been previously addressed in two judgments of the High Court: Amit Cotton Industries vs. Principal Commissioner of Customs and Awadkrupa Plastomech Pvt. Ltd vs. Union of India. The latter case was challenged by the Union of India in the Supreme Court, where the appeal was ultimately dismissed, affirming the High Court's finding regarding the IGST export refund claim.

Based on the Supreme Court's order and previous judgments, the High Court allowed all the writ applications and directed the respondents to sanction the IGST refunds for goods exported as 'Zero Rated Supplies.' The refunds were to be accompanied by 6% simple interest from the date of the shipping bills until the actual refund date. Additionally, if any differential duty remained unpaid in any of the writ applications, it was required to be settled promptly. Consequently, all the writ applications were disposed of accordingly.

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