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.

AI Summary

Exporters challenge IGST refund demands under Rule 96(10), seek relief from CBDT and Finance Minister amid rising litigation. Exporters who received IGST refunds on exports are facing demands from customs to pay IGST on inputs with interest, potentially leading to show cause notices. Many have filed writ petitions against Rule 96(10) in high court, increasing litigation despite the tax neutrality of the notification breach. A suggestion is made to appeal to the CBDT and Finance Minister for condonation of refunds sought until March 31, 2021, similar to a successful income tax appeal regarding Form 10IC. A reply suggests making representations to address the issue, highlighting past system restrictions on IGST payments.