TaxTMI 
TaxTMI 
2026 (3) TMI 1292
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....ned by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. ARJUN KNIT WEAR, carrying out activity under Factory/Manufacturing' category, and having its registered place of business at D. No. 376 C, Town Survey No. 6/2, First Floor, R. Muthusamy and Brothers Industrial Complex, Palladam Road, Tiruppur, Tamil Nadu - 641 604, are registered with GST vide GSTIN 33BKZPS4409P1Z5. 2. The applicant has sought advance ruling on the following questions, viz., i) When goods are exported with IGST payment, should the transaction value include reimbursed expenses such as ocean freight, insurance, foreign import duties, delivery charges, ....
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...., 2017. The relevant extract is provided below. "(1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include - (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Service Tax (Compensation to States) Act, if charged separately by the supplier. (b) ..... (c) Incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services". Therefore, according to the above provision, duties paid under foreign laws and incidental expenses such as insurance, freight, and other costs incurred unde....
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....und of tax so paid". Therefore, in case of garment exports, a refund can be applied for the IGST paid on the transaction value, as outlined in Section 15, which qualified for a refund. ii) Section 54. Refund of tax:- Furthermore, Section 54(8) of CGST Act 2017 governs the refund of IGST paid on exports "(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is related to- (a) Refund of tax paid on export of goods or services or both or on inputs or input services used in making such exports." Therefore, as per Section 16 of the IGST Act 2017 and Section 54 of the CGST Act 2017, the IGST paid on exports, which refers to the tax paid on the transaction value, is eligible for a refund. Section 15 defines the transaction value to include duties paid under foreign laws and incidental expenses like insurance, freight and other costs incurred under DDP (Delivered Duty Paid) terms, charged before the delivery of goods. As a result, the GST paid on such duties and incidental expenses can be claimed as a refund under export with IGST payment. iii) ....
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....s paid only as part of the export process to comply with procedural requirements. To uphold the principle that GST should apply only to domestic consumption, the government ensures that any GST paid on exports is refunded to the exporter. This mechanism prevents double taxation and enhances the competitiveness of Indian goods and services in the global market. By refunding the GST paid at the export stage, the government reinforces its commitment to making exports tax-free, in line with international trade practices. 5.1 The applicant falls under the administrative jurisdiction of 'State', and State Tax Officer, Pongalur Assessment Circle, Tiruppur-I, vide their letter dated 11.09.2025 has stated that the value to be adopted shall be the transaction value as laid down under Section 15 of the Act, and conveyed that there no adjudication proceedings are pending in respect of the applicant. 5.2 Since, no remarks have been received from the Central GST jurisdictional Authority, it is construed that there are no pending proceedings against the applicant on the questions raised by them in their advance ruling application. Personal Hearing 6.1 Mr. S. Harishankar, and Mr. S.....
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....where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and (e) subsidies directly linked to the price excluding subsidies provi....
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...., it becomes imperative to make it clear that valuation for the purposes of GST and that of Customs are on a different footing, since the valuation of goods for export as prescribed under Section 14 of the Customs Act, 1962, is contemplated for delivery at the time and place of exportation, and it reads as, "14. Valuation of goods.- (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, the value of the imported goods and export goods shall be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation, or as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale subject to such other conditions as may be specified in the rules made in this behalf:" 7.5 The CBIC in para 9 of its Circular No. 37/11/2018-GST dated 15.03.2018, has come up with a clarification on the said issue, which reads as :- "9. Discrepancy between values of GST invoice and shipp....