Summary of the Circular No 233/27/2024 for IGST Refunds for Exporters
The Clarification has been issued by Circular No 233/27/2024 for IGST Refunds for Exporters. This clarification states that even if business initially imported goods without paying IGST and compensation cess using the exemptions under Notification No 78/2017-Customs dated 13-10-2017 or Notification No 79/2017- Customs dated 13-10-2017, but later pays the IGST and compensation cess along with interest, it is treated as if they did not use those exemptions in import of goods. Therefore, in such cases, the refund of IGST paid on exports should be allowed because it would not be considered a violation of Rule 96(10) of the CGST Rules,2017.
- If business initially imported the goods without paying IGST and compensation cess by using benefit of Notification No 78/2017 or Notification No 79/2017, later pays IGST and compensation cess along with interest and gets the import documents (Bill of Entry) updated by custom authorities to reflect the payment, then refund of IGST on exported goods will not be considered as Violation of Rule 96(10) of CGST Rules,2017.
- IGST Refund can be claimed by the exporter if it pay required tax and interest and corrects its business records.
