13 Oct 2018Posted By: Mudit Handa

CBIC amends CGST Rules to enable exporters claim IGST Refund

It can’t be negated that the supreme authority to administer and resolve various perplexities regarding Goods and Service Tax, i.e. the GST council has dependably drafted and properly executed all the fundamental growth-oriented reforms in their frequent meetings. Moreover, the GST laws have been repetitively altered or amended in order to make them more practical for various areas of the economy.


Importantly, different sections under the Central Goods and Services Tax, 2017 India have been so far revised more than once in the past GST council gatherings, as to make them easier to understand.


In this regard, the Central Board of Indirect taxes and Customs (CBIC) on October 9, 2018, had formally introduced the Central Goods and Services Tax (12th Amendment) Rules, 2018 vide its Notification 54/2018 under the head 'Central Tax'. This amendment has been introduced with regard to refund claims of the IGST paid exporters who have GST registration, on specific supplies.


#1. What was the purpose behind the 12th Amendment of CGST Rules 2017?

  • As per the CGST (12th Amendment) Rules-2018, the GST office has substituted the Rule 96(10) and Rule 89(4B) prospectively (i.e. from the very day of release of the notification).
  • The central objective of these amendments was to facilitate the claim of IGST refunds by the exporters having GST registration and have procured the capital goods under the government's Export Promotion Capital Goods (EPCG) scheme.


#2. Why amendments have been made to CGST Rule 96(10) and 89(4B)?

As mentioned previously, the principal goal behind the CGST (12th Amendment) Rules 2018 was to make the process of the claim of IGST refunds easier. In this regard,

  • The CGST Rule 96(10) has been modified to enable the exporters to claim the refund the IGST paid that they’ve paid on the exports of capital goods procured by them under the EPCG scheme.
  • Likewise, the CGST Rule 89(4B) has also been revised as to adjust it in sync with the newly amended CGST Rule 96(10).


#3. How has CGST Rule 89(4B) been altered?

The office has presented the amendment in the CGST Rule 89(4B), wherein the exporter having GST registration and completing export with their unique Import Export Code can guarantee his refund in the accompanying case-

  • If he has unutilized input credit on account of zero-rated supplies without IGST payment with regard to the provisions on which the exporter has profited the advantage of exception from-
  1. CGST liability on the intrastate supply of goods or
  2. IGST liability on the interstate supply of goods.


#4. What amendment has been done to CGST Rule 96(10)?

The GST authority has accordingly made the amendment to the CGST Rule 96(10), wherein the exporters with GST registration and indulging in exports with the Import Export Code registration can now claim their refunds in the cases mentioned below-

  1. If he has paid IGST on provisions with the exception of those goods that have recorded under the class of 'Deemed Exports'.
  2. However, the amendment will now permit the exporters to claim the input tax credit in the event that he has got his supply of goods under the Export Promotion Capital Goods (EPCG) scheme.

Undeniably, these amendments will now make the GST refund procedure easier and stress-free for the exporters and in turn, will boost export promotion in India.


In case you need any guidance on GST registration or IEC Registration, feel free to contact us at 8881-069-069.

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