CBIC imposes Restrictions on IGST Refund on Export of Goods and Services w.e.f 23rd Oct 2017 [Read Notification]

The Central board of Indirect Taxes and Customs ( CBIC ) has imposed fresh restrictions on  claiming Integrated GST refund on the export of goods and services.

As per the Notification issued today, 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 Notifications issued by the Government from time to time. The benefits includes the provisions relating to ‘deemed supply’ under the notification issued in October 2017.

“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) 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 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, 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,”it said.

The Notification issued on 19^th October 2017 said that the Supply of goods by a registered person against Advance Authorization, Supply of capital goods by a registered person against Export Promotion Capital Goods Authorization, Supply of goods by a registered person to Export Oriented Unit, Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 against Advance Authorization etc., are ‘deemed supply’ for the purpose of the Act.

The restrictions shall be deemed to have come into force with effect from the 23rd October, 2017.