CBIC imposes restriction on the IGST refund route for exports of Tobacco, Pan Masala, Mentha Oil and similar products, vide IGST Notification 1/2023 effective 1st October, 2023, in line with recommendations of the 50th meeting of the GST Council.
CBIC Integrated Tax Notification 1/2023 dated 31/07/2023: IGST Refund Route Restricted for Tobacco, Pan Masala, Mentha Oil Products Exports effective 01/10/2023
Restricted class of goods or services for export on payment of integrated tax followed with claim of the refund of taxes paid
| Sl. No. & Description |
| 1. Pan-masala |
| 2. Unmanufactured tobacco (without lime tube) – bearing a brand name |
| 3. Unmanufactured tobacco (with lime tube) – bearing a brand name |
| 4. Tobacco refuse, bearing a brand name |
| 5. ‘Hookah’ or ‘gudaku’ tobacco bearing a brand name |
| 6. Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name |
| 7. Other water pipe smoking tobacco not bearing a brand name. |
| 8. Smoking mixtures for pipes and cigarettes |
| 9. Other smoking tobacco bearing a brand name |
| 10. Other smoking tobacco not bearing a brand name |
| 11. “Homogenised” or “reconstituted” tobacco, bearing a brand name |
| 12. Chewing tobacco (without lime tube) |
| 13. Chewing tobacco (with lime tube) |
| 14. Filter khaini |
| 15. Preparations containing chewing tobacco |
| 16. Jarda scented tobacco |
| 17. Snuff |
| 18. Preparations containing snuff |
| 19. Tobacco extracts and essence bearing a brand name |
| 20. Tobacco extracts and essence not bearing a brand Name |
| 21. Cut tobacco |
| 22. Pan masala containing tobacco ‘Gutkha’ |
| 23. All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name |
| 24. All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name |
| 25. Following essential oils other than those of citrus fruit namely:- |
| (a) Of peppermint (Mentha piperita); |
| (b) Of other mints : Spearmint oil (ex-mentha spicata), Water mint-oil (ex-mentha aquatic), Horsemint oil (ex-mentha sylvestris), Bergament oil (exmentha citrate), Mentha arvensis |
CBIC Notifies Commencement date of Amendments in Section 16 of IGST Act vide Finance Act, 2021
CBIC has notifies 01/10/2023 as the commencement date in respect of amendments in carried out in Section 16 of IGST Act vide Section 123 of the Finance Act, 2021, in line with recommendations of the GST Council to provide for restriction of IGST refund route in respect of exports of tobacco, pan masala & other similar items as well as mentha oil.
CBIC Central Tax Notification 27/2023 dated 31/07/2023: Commencement Date (01/10/2023) notified for Amendments in Section 16 of IGST Act vide Finance Act, 2021
Government has rightly slapped this restrition to curb tax evasion on pan masala, chewing tobacco and similar products.