TaxTMI 
TaxTMI 
One of My client is exporting Pan Masala with Payment of IGST and Cess.
Is he eligible to take refund of both IGST and Cess ?
Refund of Cess on Export of Pan Masala
04 Jul 2023 
19 Replies 
5157 Views Asked by
Refund of Compensation Cess and IGST eligible for exports, but refund route to be restricted for certain goods prospectively.
Exporters of pan masala who pay IGST and Compensation Cess at export are eligible to claim refunds of both taxes under the zero rating principle and Circular No.1/1/2017, which treats IGST Act zero rating rules as applicable mutatis mutandis to compensation cess. The GST Council recommended prospectively restricting IGST refund routes for specified goods and permitting exports of those goods only against a Letter of Undertaking with refund available through accumulated ITC, while other goods may continue to be exported on payment of IGST with refund of tax paid. (AI Summary)
Exporters of pan masala who pay IGST and Compensation Cess at export are eligible to claim refunds of both taxes under the zero rating principle and Circular No.1/1/2017, which treats IGST Act zero rating rules as applicable mutatis mutandis to compensation cess. The GST Council recommended prospectively restricting IGST refund routes for specified goods and permitting exports of those goods only against a Letter of Undertaking with refund available through accumulated ITC, while other goods may continue to be exported on payment of IGST with refund of tax paid. (AI Summary)