IGST Refund on Export product

[Mathi Bharathi]

Dear Sir

We have Imported the raw material by Advance Authorisation for exports.

At that time of Exports we paid the IGST by mistake and refund the same from customs.

Now GST /customs insist to repay the IGST refund under wrong availment under rule 96 (10) of GGST 2017. Please advice that we need refund or not

[Pradeep Reddy Unnathi Partners]

Hi,

IGST refund should be repaid to the Customs authorities along with interest as the exporter of goods (who used AA scheme is not eligible for IGST refund)

[KASTURI SETHI]

Dear querist,

After thorough study of "Advance Authorisation" in Foreign Trade Policy and Procedure of refund claim in CGST Act read with IGST Act and CGST Rules and Customs Act, I am of the view that this issue is worth fighting. 'Advance Authorization' and Rule 96 (10) of CGST Rules are not an hindrance here.. IGST was paid which was not required to be paid. Hence such refund claim falls in the category of "excess payment of IGST by mistake". In other words, "Any Other Category"

This is altogether different refund claim wherein Rule 96(10) cannot create bottleneck. In order to get fair justice and relief, you require penetrative study of all the relevant notifications in this context. Too much hard work is required indeed.

It is worthwhile to mention that sometimes SCNs are issued to save one's skin.

[Shilpi Jain]

You could also consider paying IGST on the imported goods. Though this will also be with interest.

Another way is to challenge the rule 96(10) itself

[Shilpi Jain]

This provision is already under challenge is certain courts

AI Summary

Exporters Face IGST Refund Repayment Demand with Interest Under Rule 96(10) of CGST Rules 2017; Legal Challenge Possible An individual inquired about an IGST refund issue related to exporting goods using raw materials imported under Advance Authorisation. They mistakenly paid IGST during export and sought a refund, which customs now demands to be repaid with interest under rule 96(10) of the CGST Rules 2017. Responses varied: one advised repayment with interest, another suggested the issue is worth contesting as it involves excess payment by mistake, and a third proposed either paying IGST with interest or challenging the rule itself, noting that the provision is already under legal challenge in certain courts.