In a recent judgement, the Bombay High Court has allowed the refund of Integrated Goods and Service Tax (IGST) on zero-rated supply along with 7% interest.
Sunlight Cable Industries, the Petitioner has contended that on 19th December 2017, the Petitioner had filed a GST Return in Form No.GSTR-1 for the month of August 2017, inadvertently mentioning an incorrect Invoice No. and Port Code in respect of export transaction made corrected Return for the month of January 2018 in Form No.GSTR-1 amending particulars with respect to the said Tax Invoice No. SUN/03/2017-18 correcting the invoice number and the Port Code.
Consequent thereto, on 9th January 2019, the Petitioner submitted before Respondent No.2 an Annexure in the prescribed format establishing concordance between the Tax Invoice and Shipping Bill in pursuance of circulars of the Department of Revenue (Central Board of Excise and Customs). After such compliances, on 15th March 2019, the Petitioner made an application to Respondent No.2 requesting to release the refund of the IGST amount.
The Petitioner lodged a grievance regarding the IGST refund with the Central Public Grievance Redress And Monitoring System (“CPGRAMS”). The Petitioner’s grievance was acknowledged. The Petitioner received an e-mail dated 7th October 2020 that the Petitioner’s grievance has been disposed of on the ground that the Petitioner had availed a higher duty drawback on its exports under the said Export Invoice and corresponding Shipping Bill.
The documents would reveal that the export in question was a zero-rated supply in terms of Section 16(3) of the IGST Act, hence, the provisions of Section 54 of the Central Goods and Service Tax (CGST) Act, as well as Rule 96 of CGST Rules, would become applicable.
Section 54 of the CGST Act provides for a refund of tax, which would entitle the Assessee to claim any refund of tax and interest or any other amount paid by him by making an application before the expiry of two years from the relevant date in such form and manner as may be prescribed. Rule 96 of the CGST Rules, which provides for a refund of integrated tax paid on goods or services exported out of India had become applicable.
The division bench of Justice G.S. Kulkarni and Justice Jitendra Jain has directed “the Respondents are directed to refund to the Petitioner the IGST paid by the Petitioner in respect of the goods exported, i.e. zero-rated supply, under shipping bills in question being an amount of Rs. 21,41,451/- with simple interest at 7% per annum with effect from 22nd February 2018.”
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