CGST Rule 96: Refund of IGST on Exported Goods/ Services

Provisions under Rule 96 of CGST Rules, 2017 relating to “Refund of IGST on Exported Goods/ Services”:

CGST Rule 96: Refund of Integrated Tax paid on Goods or Services Exported out of India (Chapter X: Refund) [*1&4(a)]

(1) The shipping bill filed by an exporter of goods [*5(a)] shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when:-

(a) the person in charge of the conveyance carrying the export goods duly files a departure manifest or [*9] an export manifest or an export report covering the number and the date of shipping bills or bills of export; and

(b) the applicant has furnished a valid return in FORM GSTR-3B: [*13(a)]

Provided that if there is any mismatch between the data furnished by the exporter of goods in Shipping Bill and those furnished in statement of outward supplies in FORM GSTR-1, as amended in FORM GSTR-1A if any, [*16(a)] such application for refund of integrated tax paid on the goods exported out of India shall be deemed to have been filed on such date when such mismatch in respect of the said shipping bill is rectified by the exporter;

Provided that the exporter of goods may file an application electronically in FORM GST RFD-01 through the common portal for refund of additional integrated tax paid on account of upward revision in price of goods subsequent to export of such goods, and on which the amount of integrated tax paid at the time of export of such goods has already been refunded in accordance with provisions of sub-rule (3) of this rule, and such application shall be dealt with in accordance with the provisions of rule 89. [*16(b)]

(2) The details of the relevant export invoices in respect of export of goods [*5(b)] contained in FORM GSTR 1, as amended in FORM GSTR-1A if any, [*16(c)] shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India.

[*3&15]

(3) Upon the receipt of the information regarding the furnishing of a valid return in Form GSTR-3B [*2&14] from the common portal, the system designated by the Customs or the proper officer of Customs, as the case may be, shall process the claim of refund in respect of export of goods [*5(c)] and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and as intimated to the Customs authorities.

(4) The claim for refund shall be withheld where,-

(a) a request has been received from the jurisdictional Commissioner of central tax, State tax or Union territory tax to withhold the payment of refund due to the person claiming refund in accordance with the provisions of sub-section (10) or sub-section (11) of section 54; or

(b) the proper officer of Customs determines that the goods were exported in violation of the provisions of the Customs Act, 1962, or [*13(b)]

(c) the Commissioner in the Board or an officer authorised by the Board, on the basis of data analysis and risk parameters, is of the opinion that verification of credentials of the exporter, including the availment of ITC by the exporter, is considered essential before grant of refund, in order to safeguard the interest of revenue. [*13(c)]

(5) [*13(d)]

(5A) Where refund is withheld in accordance with the provisions of clause (a) or clause (c) of sub-rule (4), such claim shall be transmitted to the proper officer of Central tax, State tax or Union territory tax, as the case may be, electronically through the common portal in a system generated FORM GST RFD-01 and the intimation of such transmission shall also be sent to the exporter electronically through the common portal, and notwithstanding anything to the contrary contained in any other rule, the said system generated form shall be deemed to be the application for refund in such cases and shall be deemed to have been filed on the date of such transmission. [*13(e)]

(5B) Where refund is withheld in accordance with the provisions of clause (b) of sub-rule (4) and the proper officer of the Customs passes an order that the goods have been exported in violation of the provisions of the Customs Act, 1962 (52 of 1962), then, such claim shall be transmitted to the proper officer of Central tax, State tax or Union territory tax, as the case may be, electronically through the common portal in a system generated FORM GST RFD-01 and the intimation of such transmission shall also be sent to the exporter electronically through the common portal, and notwithstanding anything to the contrary contained in any other rule, the said system generated form shall be deemed to be the application for refund in such cases and shall be deemed to have been filed on the date of such transmission. [*13(e)]

(5C) The application for refund in FORM GST RFD-01 transmitted electronically through the common portal in terms of sub-rules (5A) and (5B) shall be dealt in accordance with the provisions of rule 89. [*13(e)]

(6) [*13(f)]

(7) [*13(g)]

(8) The Central Government may pay refund of the integrated tax to the Government of Bhutan on the exports to Bhutan for such class of goods as may be notified in this behalf and where such refund is paid to the Government of Bhutan, the exporter shall not be paid any refund of the integrated tax.

(9) The application for refund of integrated tax paid on the services exported out of India shall be filed in FORM GST RFD 01 and shall be dealt with in accordance with the provisions of rule 89. [*4(b)&5(d)]

(10) [*5(e),6,7,8&17]

[*10&17]

Notes (History of Amendments in Bare Text):

1. CGST Rule 96 introduced vide Notification 10/2017, effective 01/07/2017.

2. In clause (b) sub-rule (1) and in sub-rule (3), the text “or FORM GSTR-3B, as the case may be;” inserted after the text “FORM GSTR 3” from 01/07/2017 vide Notification 15/2017. [*13(a)]

3. In sub-rule (2), first and second proviso inserted from 28/10/2017 vide Notification 51/2017. [*15]

4. Amendments from 23/10/2017 vide Notification 75/2017:

(a) in the heading, the text “or services” inserted after the text “paid on goods”.

(b) sub-rule (9) inserted. [*5(d)]

5. Amendments from 23/10/2017 vide Notification 3/2018:

(a) in sub-rule (1), the text “an exporter” substituted with the text “an exporter of goods”.

(b) in sub-rule (2), the text “relevant export invoices” substituted with the text “relevant export invoices in respect of export of goods”.

(c) in sub-rule (3), the text “the system designated by the Customs shall process the claim for refund” substituted with the text “the system designated by the Customs or the proper officer of Customs, as the case may be, shall process the claim of refund in respect of export of goods”

(d) sub-rule (9) substituted. Please refer Notification 75/2017 [*4(b)] for text thereof before substitution.

(e) sub-rule (10) inserted. [*6,7,8&17]

6. Sub-rule (10) substituted from 23/10/2017 vide Notification 39/2018. Please refer Notification 3/2018 for text thereof before substitution. [*5(e),7,8&17]

7. Sub-rule (10) re-substituted from 23/10/2017 vide Notification 53/2018 (restored back to previous version). Please refer Notification 39/2018 for text thereof before substitution. [*5(e),6,8&17]

8. sub-rule (10) again re-substituted from 09/10/2018 vide Notification 54/2018. Please refer Notification 53/2018 for text thereof before substitution. [*5(e),6,7&17]

9. In sub-rule (1), in clause (a), the text “a departure manifest or” inserted after the text “export goods duly files” from 31/12/2018 vide Notification 74/2018.

10. In sub-rule (10), in clause (b) Explanation inserted from 23/10/2017 vide Notification 16/2020. [*17]

11. Amendments from 18/05/2021 Notification 15/2021:

(a) in sub-rule (6), the text “Part B” substituted with the text “Part A”. [*13(f)]

(b) in sub-rule (7), the text “after passing an order in FORM GST RFD-06” substituted with the text “by passing an order in FORM GST RFD-06 after passing an order for release of withheld refund in Part B of FORM GST RFD-07”. [*13(g)]

12. Clause (c) inserted in sub-rule (1), vide Notification 35/2021, followed with Notification 38/2021 on commencement date of 01/01/2022.

13. Amendments from 01/07/2017 vide Notification 14/2022:

(a) in sub-rule (1), clause (b) substituted. Please refer Notification 10/2017 [*1] and Notification 15/2017 [*2] for text thereof before substitution.

(b) in sub-rule (4), in clause (b), the text “1962” substituted with the text “1962; or”.

(d) sub-rule (5) omitted. Please refer Notification 10/2017 for text thereof before omission.

(e) sub-rules (5A), (5B) & (5C) inserted.

(f) sub-rule (6) omitted. Please refer Notification 10/2017 [*1] and Notification 15/2021 [*11(a)] for text thereof before substitution.

(g) sub-rule (7) omitted. Please refer Notification 10/2017 [*1] and Notification 15/2021 [*11(b)] for text thereof before substitution.

14. in sub-rule (3), the text “FORM GSTR-3 or FORM GSTR-3B, as the case may be” substituted with the text “FORM GSTR-3B” from 01/10/2022 vide Notification 19/2022.

15. In sub-rule (2), both the provisos omitted from 04/08/2023 vide Notification 38/2023. Please refer Notification 51/2017 [*3] for text thereof before substitution.

16. Amendments from 10/07/2024 vide Notification 12/2024:

(a) in sub-rule (1), in the proviso to clause (b), the text “, as amended in FORM GSTR-1A if any,” inserted after the text “FORM GSTR-1”.

(b) in sub-rule (1), after clause (c), proviso inserted.

17. Finally, sub-rule (10) omitted from 08/10/2024 Notification 20/2024. Please refer Notification 54/2018 for text thereof before substitution. Also, the Explanation to sub-rule (10) stands omitted from 08/10/2024 with omission of sub-rule (10) itself from 08/10/2024. Please refer Notification 16/2020 [*10] for text of the Explanation before omission. [*5(e),6,7&8]

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