GST Refund of merchant export post deletion of 89(4) in 54th council meet

[Rashmi Bihani]

Post deletion of Rule 96 (10) of IGST, a RTP can now export the goods purchased under .1 % (Merchant Export concessional rate) can now export the goods under IGST and now not required to export only under LUT

thanks

[KASTURI SETHI]

Dear querist,

In the heading of your query, you have mentioned the words, "post deletion of Rule 89 (4)". Sub-rule 4 of Rule 89 has not been deleted. In the query you have mentioned about deletion of Rule 96 (10). What is your actual query?

Pl. re-draft and also elaborate your query.

[Shilpi Jain]

Ignoring the heading of your query, going by the text of your query - Yes you can export with payment of tax and claim refund

[Shilpi Jain]

It would also be relevant for you to note the decision of the Kerala HC in the case of Sance Laboratories - 2024 (11) TMI 188 - KERALA HIGH COURT GST which has held that the said rule 96(10) is ultra vires. Thereby export with payment of tax was an option right from the beginning itself.

[Rashmi Bihani]

It is with respect to the refund filling for merchant exports and export made by payment of duty (IGST). With deletion of 96(10) and 894(b) now whether 

Merchant supply can now  be exported with  payment  of Duty which before  8.10.2024 was restricted 

AI Summary

Merchant export under IGST: refund entitlement and option to export with payment after deletion of restrictive rule. Merchants may export by paying IGST and subsequently claim refunds following deletion of a previously restrictive rule; practitioner responses confirm export-with-payment is available and a high-court decision declaring the restrictive rule ultra vires supports that option, with practical consequences for refund filing and compliance where exports were previously limited to LUT-based mechanisms.