CBIC Notifies Procedure for Refund of Additional Integrated Tax Due to Price Revision of Exported Goods

By: Admin July 12, 2024 Categories: 53rd GST Council Meet | Notification & Circular

Background

In the 53rd Meeting of the GST Council held on June 22, 2024, it was recommended to establish a mechanism for claiming a refund of additional IGST paid due to an upward revision in the price of exported goods. This aims to aid taxpayers who need to pay extra IGST following price increases after exporting goods.

Notification

The CBIC, via Notification No. 12/2024 – Central Tax dated July 10, 2024, under Section 164 of the CGST Act, has inserted the following provisions:

Sub-rule (1B) to Rule 89:

  • Taxpayers can claim a refund of additional IGST paid due to post-export price revisions by filing FORM GST RFD-01 electronically within two years from the relevant date as per Section 54, Explanation (2), clause (a).
  • For cases before this sub-rule’s enforcement, the application can be filed within two years from the enforcement date.

Sub-rule (2), Clause (bb) to Rule 89:

  • Taxpayers must submit a statement with export invoices, shipping bills, Bank Realisation Certificates, details of prior refunds, supplementary invoices or debit notes, proof of additional IGST payment and interest, and certificates from a practicing chartered accountant or cost accountant.
  • This includes a reconciliation statement for supplementary invoices or debit notes.

Sub-rule (1), Proviso to Rule 96:

  • Exporters may file FORM GST RFD-01 electronically for a refund of additional IGST paid due to post-export price revisions, and the application will be processed per Rule 89.

Effect of the Notification

Taxpayers can now claim refunds for additional IGST paid due to price increases after exporting goods by filing FORM GST RFD-01 electronically. The application requires detailed documentation including export invoices, shipping bills, Bank Realisation Certificates, supplementary invoices or debit notes, proof of additional tax payment, foreign inward remittance certificates, and validation certificates from chartered or cost accountants.

This provision streamlines the process for taxpayers who need to pay additional IGST due to post-export price revisions, allowing them to claim refunds efficiently.

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