The circular clarifies the regularization of refund of IGST...

The circular clarifies the regularization of refund of IGST availed in contravention of Rule 96(10) of CGST Rules, 2017, where exporters had imported inputs without paying integrated taxes and compensation cess. Initially, if inputs were imported without IGST and cess by availing exemption notifications, but later the exporter paid IGST, cess with interest and got the Bill of Entry reassessed, then the IGST paid on exports shall not be considered in contravention of Rule 96(10). The Explanation inserted in Rule 96(10) retrospectively deems the exemption notification benefits as not availed if IGST and cess were paid on imported inputs. Thus, refund of IGST paid on exports can be regularized in such cases.