Rule 96 of CGST Rules 2017: Refund of IGST on Exported Goods/ Services

Provisions under Rule 96 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Refund of IGST on Exported Goods/ Services”, are as under:

CGST Rule 96: Refund of Integrated Tax paid on Goods or Services Exported out of India (Chapter-X: Refund) 

(1) The shipping bill filed by an exporter by an exporter of goods 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 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 3 or FORM GSTR 3B, as the case may be;

(2) The details of the relevant export invoices relevant export invoices in respect of export of goods contained in FORM GSTR 1 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.

Provided that where the date for furnishing the details of outward supplies in FORM GSTR 1 for a tax period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR 1 after the return in FORM GSTR 3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs:

Provided further that the information in Table 6A furnished under the first proviso shall be auto-drafted in FORM GSTR 1 for the said tax period.

(3) Upon the receipt of the information regarding the furnishing of a valid return in FORM GSTR 3 or FORM GSTR 3B as the case may be from the common portal, the system designated by the Customs shall process the claim for refund 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 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.

(5) Where refund is withheld in accordance with the provisions of clause (a) of sub-rule (4), the proper officer of integrated tax at the Customs station shall intimate the applicant and the jurisdictional Commissioner of central tax, State tax or Union territory tax, as the case may be, and a copy of such intimation shall be transmitted to the common portal.

(6) Upon transmission of the intimation under sub-rule (5), the proper officer of central tax or State tax or Union territory tax, as the case may be, shall pass an order in Part B Part A of FORM GST RFD 07.

(7) Where the applicant becomes entitled to refund of the amount withheld under clause (a) of sub-rule (4), the concerned jurisdictional officer of central tax, State tax or Union territory tax, as the case may be, shall proceed to refund the amount after passing an order in FORM GST RFD 06.

(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 persons claiming refund of integrated tax paid on export of goods or services should not have received supplies on which the supplier has availed the benefit of notification No. 48/2017 Central Tax dated 18th October, 2017 or notification No. 40/2017 Central Tax (Rate) dated 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate) dated 23rd October, 2017.

(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.

(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017 Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E) dated the 18th October, 2017 or notification No. 40/2017 Central Tax (Rate) 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E) dated the 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate) dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E) dated the 23rd October, 2017 or notification No. 78/2017 Customs dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E) dated the 13th October, 2017 or notification No. 79/2017 Customs Tax dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E) dated the 13th October, 2017. (Note 9)

(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have,-

(a) received supplies on which the benefit of the Government of India, Ministry of Finance notification No. 48/2017 Central Tax, dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 1305 (E), dated the 18th October, 2017 or notification No. 40/2017 Central Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated the 23rd October, 2017 has been availed; or

(b) availed the benefit under notification No. 78/2017 Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017 Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017. (Note 10)

(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017 Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E) dated the 18th October, 2017 or notification No. 40/2017 Central Tax (Rate) 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E) dated the 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate) dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E) dated the 23rd October, 2017 or notification No. 78/2017 Customs dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E) dated the 13th October, 2017 or notification No. 79/2017 Customs Tax dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E) dated the 13th October, 2017. (Note 11)

(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have-

(a) received supplies on which the benefit of the Government of India, Ministry of Finance notification No. 48/2017 Central Tax, dated the 18th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305(E) dated the 18th October, 2017 except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme or notification No. 40/2017 Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320(E) dated the 23rd October, 2017 or notification No. 41/2017 Integrated Tax (Rate) dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E) dated the 23rd October, 2017 has been availed; or

(b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E) dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299(E) dated the 13th October, 2017 except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme. (Note 12)

Explanation.- For the purpose of this sub-rule, the benefit of the notifications mentioned therein shall not be considered to have been availed only where the registered person has paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed exemption of only Basic Customs Duty (BCD) under the said notifications. (Note 14)

Amendments History:

1. In clause (b) of sub-rule (1) and in sub-rule (3), the text ‘or FORM GSTR 3B, as the case may be’ inserted vide Notification 15/2017 Central Tax dt. 01/07/2017 w.e.f. 01/07/2017.

2. First and Second Provisos to sub-rule (2) inserted vide Notification 51/2017 Central Tax 28/10/2017.

3. The text ‘or Services’ inserted in Rule Heading vide Notification 75/2017 Central Tax dt 29/12/2017 w.r.e.f. 23/10/2017.

4. Sub-rule (9) inserted vide Notification 75/2017 Central Tax dt 29/12/2017 w.r.e.f. 23/10/2017.

5. In sub-rule (1) the text ‘an exporter’ substituted with the text ‘an exporter of goods’ vide Notification 3/2018 Central Tax dt. 23/01/2018 w.r.e.f. 23/10/2017.

6. In sub-rule (2), the text ‘relevant export invoices’ substituted with the text ‘relevant export invoices in respect of export of goods’ inserted vide Notification 3/2018 Central Tax dt. 23/01/2018 w.r.e.f. 23/10/2017.

7. 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’ vide Notification 3/2018 Central Tax dt. 23/01/2018 w.r.e.f. 23/10/2017.

8. Sub rule (9) substituted vide Notification 3/2018 Central Tax dt. 23/01/2018 w.r.e.f. 23/10/2017.

9. Sub-rule (10) inserted vide Notification 3/2018 Central Tax dt. 23/01/2018 w.r.e.f. 23/10/2017.

10. Sub rule (10) substituted vide Notification 39/2018 Central Tax dt. 04/09/2018 w.r.e.f. 23/10/2017.

11. Sub-rule (10) substituted again (restored back to previous version/ provisions as per Note 9) vide Notification 53/2018 Central Tax dt. 09/10/2018 w.r.e.f. 23/10/2017.

12. Sub-rule (10) substituted prospectively vide Notification 54/2018 Central Tax dt. 09/10/2018.

13. The words “a departure manifest or” inserted in clause (a) of sub-rule (1) vide Notification 74/2018 Central Tax dt. 31/12/2018.

14. Explanation to clause (b) of sub-rule (10) inserted w.e.f. 23/10/2017, vide  Notification 16/2020 Central Tax dt. 23/03/2020.

15. In sub rule (6), the text ‘Part B’ substituted with the text ‘Part A, vide Notification 15/2021 Central Tax dt. 18/05/2021.

16. 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, vide Notification 15/2021 Central Tax dt. 18/05/2021.

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It may be noted that the above information is based on Updated CGST Rules 2017 (amended upto 18/05/2021), as compiled/ shared by CBIC (i.e. as notified/ amended upto 18/05/2021 by the CBIC). However, for detailed/ official information and/ or subsequent updates, please refer relevant Notifications. E&OE

Further, it may be noted that Rules 27 to 138 (pertaining to various Chapters) of the CGST Rules, 2017 were initially notified by CBIC, along with the applicable Forms, vide Central Tax Notification 10/2017 dt. 28/06/2017: CGST (2nd Amendment) Rules, 2017, applicable w.e.f. 01/07/2017 (or as specified in respective Rules).

CBIC Updates (GST)
GST Circulars, Notifications, Press Releases, Orders, etc. issued by the Central Board of Indirect Taxes & Customs (CBIC) in different years, along with Section-wise/ Rule-wise Text of GST Acts/ Rules:
CGST: CGST Act/ Definitions, CGST Rules
IGST: IGST Act/ Definitions, IGST Rules
UTGST: UTGST Act/ Definitions, UTGST Rules
CBIC Circulars (CGST/ IGST/ UTGST): 2021, 2020, 2019, 2018, 2017
CBIC Central Tax (CGST) Notifications: 2021, 2020, 2019, 2018, 2017
CBIC Central Tax Rate (CGST Rate) Notifications: 2020, 2019, 2018, 2017
CBIC Integrated Tax (IGST) Notifications: 2020, 2019, 2018, 2017
CBIC Integrated Tax Rate (IGST Rate) Notifications: 2020, 2019, 2018, 2017
CBIC UT Tax (UTGST) Notifications: 2020, 2019, 2018, 2017
CBIC UT Tax Rate (UTGST Rate) Notifications: 2020, 2019, 2018, 2017
CBIC Compensation Cess Notifications: 2020, 2019, 2018, 2017
CBIC Compensation Cess Rate Notifications: 2020, 2019, 2018, 2017
CBIC Orders (CGST/ IGST/ UTGST): 2020, 2019, 2018, 2017
CBIC Press Releases: 2020, 2019, 2018, 2017
Note: For Official/ updated copy, please visit the CBIC website.

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  1. SACHIN SAINI

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