The Government of Maharashtra on August 02, 2024, issued a circular regarding the Mechanism for a refund of additional Integrated Tax (IGST) paid on account of an upward revision in the price of the goods subsequent to exports.
Representations have been received from trade/industry requesting for prescribing a mechanism for seeking a refund of additional IGST paid on account of upward revision in the price of goods after export. It has been represented that there are cases where the price of export goods needs to be revised, after their exports, due to various reasons such as linking the prices of the export commodities to some international index or as per the terms of the contract between the two parties etc.
To ensure uniformity in the implementation of the provisions of the law across field formations, the Board hereby lays down the following procedure for claim and processing of refunds of additional integrated tax paid on account of upward revision in prices of goods after their exports:
• The refund of IGST paid on account of the export of goods is processed by the proper officer of Customs in an automated manner without manual intervention in terms of the provision of rule 96 of Central Goods and Services Tax Rules, 2017. However, there exists no mechanism for processing refunds of any additional integrated tax paid on account of upward revision in the price of goods, after exports, by the proper officer of customs. Therefore, it has been decided that such exporter may file an application for refund of such additional IGST paid in FORM GST RFD-01 electronically on the common portal and such application for refunds would be processed by the jurisdictional GST officer of the concerned exporter.
• It is stated that no refund shall be paid to an applicant if the amount is less than one thousand rupees. Therefore, no such refund shall be paid if the amount claimed is less than one thousand rupees.
• It is stated that the application for refund of additional IGST paid can be filed before the expiry of two years from the relevant date as per clause (a) of Explanation (2) of section 54 of the CGST Act. However, in cases, where the relevant date as per clause (a) of Explanation (2) of section 54 of the CGST Act was before the date on which sub-rule(1B) of rule 89 of CGST Rules has come into force, such refund application can be filed before the expiry of a period of two years from the date on which the said sub-rule has come into force.
• The proper officer while processing such refund claim shall verify that the exporter has duly reported the details of the export invoice and the debit note in his statement of outward supplies in FORM GSTR-1 and has duly paid such additional amount of IGST along with applicable interest for which refund is being sought in their FORM GSTR-3B return.
• The proper officer shall scrutinize the application with respect to its completeness and eligibility and only if the proper officer is satisfied that the whole or any part of the amount claimed is payable as a refund, he shall proceed to issue the refund sanction order in FORM GST RFD-06 and the payment order in FORM GST RFD-05.
[Circular No. 19T of 2024]
