REFUND OF IGST UNDER EPCG LICENSE

[SURYAKANT MITHBAVKAR]

We have manufactured and supplied Capital Goods (Pharma Machinery) with IGST to our customer who has issued invalidation letter under EPCG License.

Now our customer is not ready to pay IGST amount stating that we have to apply for refund of IGST with the GST department.

Can we apply IGST refund with GST department since it is not EOU supply. If yes give us notification for our reference.

[Shilpi Jain]

Yes. The refund should be eligible because it is a deemed export, i.e. supplied against EPCG.. Refer Notification 48/2017-CT

[SURYAKANT MITHBAVKAR]

The refund is eligible under notification No. 48/2017 but there is condition stated as follows for EPCG license holders.

Export Promotion Capital Goods Authorisation means an authorisation issued by the Director General of Foreign Trade under Chapter 5 of the Foreign Trade Policy 2015-20 for import of Capital gods for Physical exports.

In our case our customer is not exporting the capital Goods which is purchased form us. He is exporting Goods (Medicine) manufactured from that Machine.

Is there any other notification which we can consider for availing IGST refund.

[Raghunandhaanan rvi]

Sir

Also please refer to GST Circular No. 147/1/03/2021-GST dated 12.03.2021 read with Rule 89(1) of CGST Rules 2017 for better clarity on this issue. https://www.cbic.gov.in/resources/htdocs-cbec/gst/Circular_Refund_147.pdf

[Shilpi Jain]

Under EPCG the requirement is export of goods manufactured from the capital goods and not of the capital goods itself.

[SURYAKANT MITHBAVKAR]

Thanks for your valuable advice

we have applied online refund against EPCG License and department has issued us notice RFD-08. Now we have to give reply in RFD-09 but we are not traceable RFD-09 on GST Server.

Please advice which option RFD-09 available on GSTN server where we can send online reply.

AI Summary

IGST refund for deemed export under EPCG: eligibility where goods manufactured from supplied capital goods are exported. IGST paid on supply of capital goods to an EPCG authorisation holder can be claimed as refund under deemed export provisions where eligibility turns on export of goods manufactured from the capital goods rather than export of the capital goods themselves. Administrative guidance including the GST circular and Rule 89(1) procedures clarify refund mechanics. The supplier filed an online refund application, received RFD-08 and must submit RFD-09 as an online reply but cannot locate the RFD-09 option on the GST portal, creating a procedural compliance problem.