Refund With Payment Of Tax In Case Of Deemed Exports

[HIMANSHU GOEL]

As per Rule 96(10) of CGST Rules, 2017, a person cannot claim refund of IGST on export of services where such person has availed benefit of Deemed Export under NN 48/2017-CT dated 18th Oct, 2017. Whether this restriction is applicable for

(a) indefinite period,

(b) tax period for which refund of IGST paid on export of services is filed,

(c) whole FY ?

[KASTURI SETHI]

Sub-rule 10 of Rule 96 has been inserted vide Notification No.54/18-CT dated 9.10.18. First of all you are to ascertain the date of enforcement of this notification which restricts the refund by virtue of Notification no. 48/17-CT dated 18.10.17.

[KASTURI SETHI]

Change in rules is for indefinite period or we may say until further amendment takes place.

[Ganeshan Kalyani]

The amendment to the provision is prospective.

AI Summary

Restriction on IGST refund when deemed export benefits are claimed, applied prospectively and remaining until amendment. Rule 96(10) of the CGST Rules, inserted by notification dated October 9, 2018, bars IGST refund on export of services where the supplier has availed deemed export benefits under the earlier notification; the amendment should be checked for its date of enforcement, and has been described in replies as prospective and operative until further amendment.