GST Refund on Exports of Services

Rule 96 of CGST Rule : Refund of integrated tax paid on goods or services exported out of India-

(1) The shipping bill filed by an exporter of goods shall be deemed to be an application n 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-3B:

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,  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;

(c) the applicant has undergone Aadhaar authentication in the manner provided in rule 10B;

(2) The details of the 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 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; or

(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.

(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.

(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.

(6) [***] Omitted

(7) [***] Omitted

(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

(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.

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.