gst rule 96(10)

[KANHAIYA AGRAWAL]

we received the goods from the foreign customer for the job work purposes under advance authorisation .

After completion of the job work we sent (export) it back to our customer after charging the job charges .

we cleared this transaction under gst as with payment of tax option on job work charges and also got the refund of gst.

Now the department is asking to pay the gst refund granted to us as this is hited by GST rule 96(10).

Can you please guide me on whether rule 96(10) of GST Act is applicable or not.

AI Summary

IGST refund restriction for exporters may apply when notified benefits were availed, but legal challenges and stays exist.
The central question is whether Rule 96(10) prohibits IGST refund claims for exports when the exporter availed specified notification-based benefits, including where imported principal goods were received for job work under advance authorisation and no consideration was paid for those goods. The rule applies to both goods and services and has been challenged in High Courts, with some courts granting stays; where factual characterisation of the receipt as "supply" is determinative, litigative remedy may be advised for substantial amounts.