GST Rule 96 (10)

[Shrikant Karwa]

Many exports who availed refund of IGST paid on export have received summons from customs authorities and are advised to pay IGST on inputs along with interest. Shortly they may get show cause demanding the same.

Many of affected exporters have filled writ petition in high court challenging Rule 96(10). This has unnecessarily increased litigations even though the breaking the notification is tax neutral.

REPRESENTATION TO CBDT

I believe we need to send representation to CBDT Chairman and Nirmala Sitaraman to condone the exporters for refunds sought till 31st March 21.

Similar appeal under Income tax

With similar demand case under income tax for non-filing of Form 10IC for opting for 22% rate of income tax under simplified tax provision, we and many got demands for paying IT @ 30% along with interest.

We all appealed against it and sent representation to CBDT Chairman and Finance Minister. Yesterday we got condonation for delay. Please find attached the notification along with representation done by us.

Advise requested

I beleive similar appeal and representation should be made for condonation under rule 96(10).

Please advise whether it shall be an worthwhile effort.

You may call the undersigned, if you find this shall be an worthwhile effort.

[Shilpi Jain]

You could consider making a representation. One more point which could be added is that for a very long time the Customs authorities / ED system did not allow only payment of IGST on the clearance. It required payment of both BCD and IGST which is why many importers could not pay only IGST on imports and claim refund of IGST paid on export.

It is important that trade and industry make representations which is an important step towards making GST simple over a period of time.

AI Summary

IGST refund dispute: exporters seek condonation and representation to prevent retrospective IGST recovery on inputs. Exporters who obtained IGST refunds on exports have been asked by customs to pay IGST on inputs with interest and face potential show-cause notices, prompting writ petitions; a proposed response is industry representation seeking condonation for affected exporters and highlighting that customs systems historically compelled combined duty payments, inhibiting payment of IGST alone and contributing to the problem.