The Central Board of Indirect Taxes and Customs (CBIC) on September 10, 2024, issued the Clarification regarding regularization of refund of IGST availed in contravention of rule 96(10) of CGST Rules, 2017, in cases where the exporters had imported certain inputs without payment of integrated taxes and compensation cess.
The following has been stated:
• It has clarified that where the inputs were initially imported without payment of integrated tax and compensation cess by availing benefits under Notification No. 78/2017-Customs dated October 13, 2017 or Notification No. 79/2017-Customs dated October 13, 2017, but subsequently, IGST and compensation cess on such imported inputs are paid at a later date, along with interest, and the Bill of Entry in respect of the import of the said inputs is got reassessed through the jurisdictional Customs authorities to this effect, then the IGST, paid on exports of goods, refunded to the said exporter shall not be considered to be in contravention of provisions of sub-rule (10) of rule 96 of CGST Rules.
• It has requested that suitable trade notices may be issued to publicize the contents of this Circular.
[Notification No 233/27/2024-GST]
