Refund of IGST paid on exports – Amendments
No. CLE-HO/POL/GST CIRCULAR/18-19
October 12, 2018
Members of the Council
Sub: Refund of IGST paid on exports – Amendments
Dear Member
CGST Notification No 39/2018 dated 04.09.2018 had restricted refund of IGST paid on exports in certain cases.
After due representation by various stake holders including CLE , the Government has come out with 2 circulars – 53/2018-CGST and 54/2018-CGST both dated 9.10.2018.
A combined reading of these circulars is as follows –
1) For exports from 23.10.2017 to 8.10.2018, refund of IGST paid on exports will not be applicable only if the exporter has received supplies of inputs where the supplier has availed benefit of following notifications :
| S. No | Notification | Benefit Provided |
| 1 | 48/2017 – CGST – 18.10.17 | IGST exemption for supplies to Advance Authorization, EPCG, EOU |
| 2 | 40/2017 – CGST Rate 23.10.17 | Lower GST rate for merchant exporters (0.05%) |
| 3 | 41/2017 – IGST Rate 23.10.17 | Lower GST rate for merchant exporters (0.1%) |
| 4 | 78/2017 – Customs 13.10.17 | IGST exemption for EOU imports |
| 5 | 79/2017 – Customs 13.10.17 | IGST exemption for Advance Authorization and EPCG imports |
2) For exports from 9.10.2018, refund of IGST on exports will not be applicable if the exporter has received goods wherein benefit of following circulars have been availed:
| S. No | Notification | Benefit Provided |
| 1 | 48/2017 – CGST – 18.10.17 | IGST exemption for supplies to Advance Authorization, EPCG, EOU |
| 2 | 40/2017 – CGST Rate 23.10.17 | Lower GST rate for merchant exporters (0.05%) |
| 3 | 41/2017 – IGST Rate 23.10.17 | Lower GST rate for merchant exporters (0.1%) |
| 4 | 78/2017 – Customs 13.10.17 | IGST exemption for EOU imports |
| 5 | 79/2017 – Customs 13.10.17 | IGST exemption for Advance Authorization (except IGST exemption under EPCG imports ) |
3) Also, CGST Notification No. 54/2018 dated 9.10.2018, makes amendments with regard to refund of accumulated GST Input Tax Credit for exporters wherein benefits of aforesaid CGST Notifications No. 40/2017 and 41/2017 and also Customs Notification No. 78/2017 and 79/2017 are involved.
Members may kindly note the above.
R. Selvam
Executive Director